Russia’s Oil Giant Battles Debt After $55 Billion Deal - Bloomberg

Russia’s Oil Giant Battles Debt After $55 Billion Deal - Bloomberg:



"Igor Sechin spent $55 billion in 2013 to buy competitor TNK-BP and create a Russian oil colossus, pumping about 5 percent of the world’s crude.



Almost two years later and investors have written off the deal. Battered by sanctions and a tumbling oil price, OAO Rosneft (ROSN) has lost 32 percent of its market value this year in dollar terms and today the whole company, TNK-BP and all, is worth $51 billion.



And buying TNK-BP has left Sechin, Rosneft’s chief executive officer and a long-time ally of Russian President Vladimir Putin, with a lot of debt to repay. State-controlled Rosneft owes about $60 billion to banks and bondholders, making it more indebted relative to earnings than any large oil producer apart from Brazil’s Petroleo Brasileiro SA."



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