A large oil producing structure

Published: 22 February 2003 y., Saturday
The deal between the shareholders of the Tyumen Oil Company and British Petroleum (BP) to create a large oil producing structure will have a positive impact on the Russian oil market as a whole, said Mikhail Fridman, president of Alfa Group. Fridman believes that a large investor like BP will increase the capitalization of all Russian oil companies. "The deal was made at prices that are 35% higher than the current market value of TNK shares, and therefore there will be a correction on the market in a very short period of time," Fridman said. He believes that the main plans for the new structure will be to increase production. The sales markets are Central and Eastern Europe, he said. In addition, there are plans to develop gas deposits. At the same time, the company has no specific plans yet. "We are currently at a stage at which the deal is just being made," Fridman said. He also expressed his confidence that the deal will get support from the Russian government. During negotiations with BP, consultations were conducted "with all top officials of our country and it would not have taken place without their approval," he said.
Šaltinis: Interfax
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