Regal Group International: TNK-BP looking to buy BP’s Algerian Assets.

Oct. 6, 2010 - PRLog -- Regal Group International has learned from Stan Polovets, CEO of the Russian billionaires’ holding company AAR that as soon as BP receives permission from the Algerian government to transfer its assets to TNK-BP, his group will take a serious look at these assets. “By being an international oil company, we will be able to achieve much higher multiples on our earnings.”


TNK-BP’s Chairman Mikhail Fridman plans to expand foreign operations so that at least50% of the firm’s production comes from outside of Russia with the firm having already announced that it intends bidding for BP’s assets in Vietnam and Venezuela.


At this stage, Regal Group International has learned that BP has declined to comment on whether they are to sell their Algerian assets which include two fields, Salah Gas in the Sahara Desert and Amenas in the southeast of the country as well as a partnership in the Rhourde El Baguel oil field.


According to TNK-BP’s Polovets, discussions between BP and the Algerian state oil company Sonatrach on the transfer of assets are currently underway.


Polovets told Regal Group International sources via e-mail that adding Algerian assets to TNK’s portfolio would provide “a launch pad for further expansion on the African continent, particularly in North Africa.”

TKN-BP which is equally owned by BP and Russian investors recently received board approval to bid for the Nam Con Son gas block, pipeline and facilities in Vietnam as well as some oil assets in Venezuela.

“Integration of BP’s assets in Venezuela aligns well with strong political Venezuela-Russia ties,” Polovets told Regal Group International, adding that a final decision on the assets could be expected “within a few weeks.”

“TNK-BP has sufficient cash flow and ample debt capacity to pay for these assets. Finding the cash for these assets is not going to be a problem,” the CEO went on to say.

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