Rosneft Head Squashes Acquisition Rumors

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The head of Rosneft, Igor Sechin, denied rumors and reports last Monday that the company was in discussion to acquire PKN Orlen of Poland. Also included in the report was the supposed acquisition by Russia's largest crude producer of Bashneft, a Russian mid-sized oil producer.

Sechin told reporters, "We have never discussed it, I mean Bashneft. And we are not in talks with PKN either, apart from about supply contracts, with which we are happy."

The reports of the expansion plan of Rosneft had been part of the news after its purchase of TNK-BP, the Anglo-Russian oil giant for a deal worth US$55 billion that was completed last March.

The remarks squashed earlier comments by Rosneft officials, such as its Vice President and Legal Counsel, Igor Maidannik who told Reuters, "We don't have any obligations. It would be a voluntary offer or if a decision on a reorganization is taken, a conversion, we will see."

The aforementioned comments were taken as a sign that the company is in acquisition mode, especially shares held by the minority in TNK-BP.

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Rosneft, Russia

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