Bernard Looney, Bob Dudley, BP, BP Rosneft dividends, BP-Rosneft projects, frozen assets, frozen dividends, Gerhard Schroeder, Igor Sechin, Kharampurneftegaz, oil and gas, Philippines, pre-tax impairment, Putin’s dirty war, Qatar, Qatar Investment Authority, Rosneft, Rosneft Board, Rosneft largest private shareholder, Russia, Russia invasion Ukraine, Russian State owned company, Sakha Republic, Sakhalin, sanctions, Sechin, Taas Yuriakh, Tas-Yuryakh, Yermak Neftegaz
So, maybe Qatar is serious about leaving. However, BP, like many oil companies, was even working with the Soviet Union in the 1920s, and their announced “departure” seems more likely a PR stunt. BP had no apparent qualms about working with either the Soviet Union or its KGB offspring, Putin.
Qatar Investment Authority states that they are unable to exit their Russian investments, which include Rosneft oil company, which is 50% Russian government owned . Thus, it appears that BP is still the largest non-Russian government investor and Qatar Investment Authority the third largest.
Russia blocking the exit provides a good excuse to stay, and avoid taking a long-term loss. It means that everyone thinks that BP’s leaving. However, if Putin keeps them from doing so, BP’s achieved a PR stunt without having to follow through on their promises. Russia’s putting the dividends in a special account, it claims.
The strange removal of both the British PM and the Italian PM, despite both surviving votes of confidence, may be the work of BP, Shell, and Italian government owned ENI, as well as of more direct Russian influence. Both UK PM Boris Johnson and Italian PM Draghi have provided support to Ukraine. Chances are that BP and ENI are on Russia’s side.
At least Qatar Investment Authority opening admit that they aren’t leaving, unlike BP and many others.
“Qatar Investment Authority cannot exit Russian market”
by Reuters May 24, 2022 8:53 AM EDT, Business
“Qatar’s $300 billion sovereign wealth fund, which owns stakes in the London Stock Exchange and Iberdrola SA, has been diversifying its investments away from European markets, which Al-Hammadi said historically represent its biggest exposure….” https://web.archive.org/web/20220531084518/https://www.reuters.com/business/qatar-investment-authority-cannot-exit-russian-market-2022-05-24/
“Foreign investors should be able to withdraw from Russian market, lobby says”
Reuters, May 19, 2022 “Russia put restrictions on foreigners trading Russian assets in March, saying it wanted to ensure decisions to exit were considered and not driven by political pressure, after Moscow sent tens of thousands of troops into Ukraine on Feb. 24….“ https://web.archive.org/web/20220524150123/https://www.reuters.com/markets/europe/foreign-investors-should-be-able-withdraw-russian-market-lobby-says-2022-05-19/
“With Moscow’s battered stock market closed for a second day on Tuesday, Russian billionaire Mikhail Fridman, who has been sanctioned by the European Union, warned that exiting Russian assets might prove difficult even without the temporary ban.
“I don’t think we would be able to divest assets in Russia right now because there are no buyers for the time being,” Fridman told reporters in London….” Read: “Russia to temporarily ban foreigners from selling assets”, March 1, 2022, Reuters https://web.archive.org/web/20220324230901/https://www.reuters.com/business/russia-impose-temporary-curbs-foreigners-seeking-exit-assets-2022-03-01/
With seats on the Rosneft Board, Qatar is still the third largest non-Russian government owner, then:
“As of October 1, 2018, Rosneft’s top three shareholders were JSC Rosneftegaz—which is 100-percent owned by the federal government—with a 50-percent stake, the Russian unit of BP with 19.75 percent, and the Qatari fund’s subsidiary QH Oil Investments LLC with 18.93 percent.” “Qatar’s Fund Pays $4.2B To Become Rosneft’s Third-Largest Shareholder” By Tsvetana Paraskova – Nov 06, 2018 https://web.archive.org/web/20201127193730/https://oilprice.com/Latest-Energy-News/World-News/Qatars-Fund-Pays-42B-To-Become-Rosnefts-Third-Largest-Shareholder.html
“CEO of Rosneft says BP still remains major stakeholder
06/18/2022 | 04:25am EDT
(Reuters) – Igor Sechin, the head of Russian oil major Rosneft, said on Saturday that BP still remains its largest private shareholder…. Speaking at the St Petersburg International Economic Forum, Sechin… said BP also still owns stakes in large-scale Rosneft projects including Taas Yuriakh, Kharampurneftegaz and Yermak Neftegaz. He said dividends accruing to BP would be transferred to special accounts…“ https://web.archive.org/web/20220724124942/https://www.marketscreener.com/quote/stock/BP-PLC-9590188/news/CEO-of-Rosneft-says-BP-still-remains-major-stakeholder-40758027/
“The British energy firm (BP.L) said it would exit its 19.75% stake in Russia’s Rosneft, which is headed by Igor Sechin, an ally of President Vladimir Putin. Rosneft accounted for a third of BP’s oil and gas output in 2021. Sechin said on June 18 that BP remained Rosneft’s largest private shareholder. BP wrote down the value of its shareholding to zero and took a $25.5 billion pre-tax impairment on the Russian assets at the end of March.” This article discusses other oil and gas companies and their status in Russia, as well: https://web.archive.org/web/20220714113422/https://www.reuters.com/business/energy/western-companies-russian-oil-gas-sector-2022-07-01/
Directors after Bernard Looney and Bob Dudley (and Schroeder) left. Taieb Belmahdi from Qatar was newly elected at the end of June:
“ROSNEFT OIL COMPANY: Rosneft Holds Annual General Meeting of Shareholders
ROSNEFT OIL COMPANY
Released 07:20:57 01 July 2022
Rosneft Holds Annual General Meeting of Shareholders
Rosneft holds Annual General Meeting of Shareholders.
The Meeting approved the Annual Report and Financial Statements of Rosneft for 2021. The Company’s shareholders also made a decision to approve the recommendations of Rosneft’s Board of Directors for the record high dividends.
The total 2021 dividend per share including dividends for 1H 2021 is 41 rubles 66 kopecs and the total dividends distribution amounts to RUB 441.5 bln, which is 50% of the Rosneft`s IFRS net income (attributable to shareholders).
During the meeting the shareholders also elected the new Rosneft`s Board of Directors with the following members:
* Andrey I. Akimov – Chairman of the Management Board, Deputy Chairman of the Board of Directors, Gazprombank (Joint Stock Company);
* Pedro A. Aquino Jr. – President – Chief Executive Officer of Oil & Petroleum International Resources Ltd., Independent Director (the Republic of the Philippines);
* Faisal Alsuwaidi – Representative of Qatar Investment Authority (the State of Qatar);
* Hamad Rashid Al-Mohannadi – Representative of Qatar Investment Authority (the State of Qatar);
* Taieb Belmahdi – Independent Director, esteemed oil and gas industry expert with 45 years of experience in the key Middle East energy production facilities, who held executive positions in Qatar Energy (the State of Qatar);
* Vladimir S. Litvinenko – Rector of Saint Petersburg Mining University (Federal State Budgetary Higher Education Institution), Independent Director;
* Alexander D. Nekipelov – Director of the Moscow School of Economics in Lomonosov Moscow State University (MSE MSU), Independent Director;
* Alexander V. Novak – Deputy Chairman of the Government of the Russian Federation;
* Maxim S. Oreshkin – Aide to the President of the Russian Federation;
* Igor I. Sechin – Chief Executive Officer, Chairman of the Management Board of Rosneft;
* Alexander V. Uss – Governor of the Krasnoyarsk Territory.
Taieb Belmahdi was elected Chairman of Rosneft`s Board of Directors.
Department of Information and Advertising Rosneft Oil Company June 30, 2022” https://web.archive.org/web/20220724123516/https://www.londonstockexchange.com/news-article/ROSN/rosneft-oil-company-rosneft-holds-annual-general-meeting-of-shareholders/15521519