Petronas may aquire stake in Russia's Rosneft
Petroliam Nasional Bhd (Petronas) is considering buying shares in Russian oil company OAO Rosneft, that will soon be listed according to its president and chief executive officer Tan Sri Mohd Hassan Marican.

He said his company had been invited to participate in the initial public offering and still had about 10 days left before the final closing.

Petronas, involved in upstream and downstream activities in over 30 countries globally, registered revenues of RM166.9 billion and net profits of RM43.6 billion for the year ended March 31 2006. It may invest as much as US$2 billion (RM7.32 billion) for a stake in the integrated oil company.

Global oil companies have been acquiring stakes in other similar companies to secure future supplies and take advantage of soaring oil prices.

Rosneft is expected to raise as much as US$11.6 billion (RM42.4 billion) from its listing on exchanges in London and Moscow. This would make it the world's fourth biggest IPO after Japan's phone firm NTT DoCoMo Inc at US$18.4 billion (RM67.3 billion) in 1998, Italian electricity company Enel SpA's US$17 billion (RM62.2 billion) IPO in 1999 and German telecoms firm Deutsche Telekom AG's US$13 billion (RM47.6 billion) IPO in 1996.

Rosneft, Russia's No. 3 oil producer, is valued at US$60 billion to US$80 billion (RM219.6 billion to RM292.8 billion). The Russian Government will get as much as US$8.5 billion (RM31 billion) and Rosneft will raise as much as US$3.1 billion (RM11.3 billion). The price range for the shares and global depositary receipt is US$5.85 to US$7.85 (RM21.40 to RM28.73) apiece, Rosneft said.

Rosneft's IPO is aimed primarily at increasing production and repaying the bulk of the US$8.5 billion (RM31.1 billion) in loans and interest taken last year by the state to raise its stake in gas monopoly OAO Gazprom to a controlling interest.
Shares of the company are due to begin trading by July 14.
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