Big names interested in Petrom, TNK-BP considers bidding

TNK-BP, the third leading oil company in Russia, a joint-venture established by UK’s British Petroleum giant and Russian TNK Company is contemplating the possibility of buying 51% in SNP Petrom, as part of its strategy to expand in the Central and Eastern Europe.

The British-Russian company, which makes $6bn in annual revenues, is the largest of all that have officially or unofficially voiced interest in buying Petrom following the publication of the privatisation announcement last month.

“TNK-BP is considering the purchase of 66% of the stock of the Turpas Turkish oil processing group and 51% of the stock of the SNP Petrom Romanian state oil and gas company. It is not a fact that we will take part in the privatisation processes in Turkey and Romania, but we are certainly studying these companies and forming our strategy, ” TNK executive director German Khan was quoted as saying by Russian news agency Interfax.

TNK-BP is third largest oil company in Russia after Yukos Sibneft and Lukoil at the moment and is interested to expand in the former Soviet Union territory and in Eastern Europe.

“We are studying Turpas in light of our Russian oil trade strategy. The same is true for Romania. If I am right, preliminary applications will be submitted before September 19,” Khan said.

TNK-BP management is working on a strategy to promote the company in Eastern Europe, as explained by its representatives. It is also studying market offers of oil assets in the region, given its plans to increase oil production.

TNK-BP is a young entity. It was formed by British Petroleum Group and Russian Tyumen Oil Company this year, following a $6.15bn deal, the largest foreign investment ever made in Russia. BP is one of the top three oil corporations in the world, with turnover reaching $179bn (2002) and market capitalisation amounting to $152bn. adrian.mirsanu@zf.ro