01 March 2016, 13:31 / Business

Glencore values Russneft at $1.4 billion

Swiss Glencore, which in November last year received 46% of Russneft for its debts , estimates its stake in the company at $685 million - thus, the entire company can be valued at almost $1.4 billion, according to the oil trader’s reporting.

In November 2015, Glencore received a 46% stake in Russneft as a debt in the amount of $984 million. However, as a result of debt settlement, the Swiss company wrote off $300 million from the value of the asset. As a result, Glencore's financial statements reflect the fair market value of its stake in Russneft at $685 million.

Glencore also notes that although it owns more than 20% of RussNeft, it cannot have a significant influence on the financial and operating activities of the oil company.

The main owner of RussNeft is Mikhail Gutseriev in 2016-2017. plans to combine its oil assets with a subsequent IPO. Initially, Gutseriev planned to complete the merger of RussNeft and NK Neftisa in mid-2015. The businessman estimates the combined company at $18 billion. After the merger of the company, Gutseriev planned to convert the debt to Glencore into shares of the merged company.

NK Neftisa develops 86 oil fields in Komi, Khanty-Mansi Autonomous Okrug, Novosibirsk Region, Udmurtia, Perm Territory and Samara Region with total recoverable reserves of more than 243.8 million tons. Recoverable oil reserves of Russneft amount to 765 million tons, gas - 177 billion cubic meters.

Glencore values ​​Russneft at $1.4 billion

Glencore values Russneft at $1.4 billion

Glencore values ​​Russneft at $1.4 billion

Glencore values Russneft at $1.4 billion