Wednesday, June 15, 2016

Inconceivable: Rosneft’s market cap exceeds that of Gazprom by $5 bln

In Q3 2008 Gazprom got to third place on the worldwide market cap league tables.
From TASS:
ST. PETERSBURG, June 15. /TASS /. Russian state-owned oil company Rosneft together with Norway's Statoil hopes to discover a new deposit in the Sea of Okhotsk with resources of over 100 million tonnes of oil equivalent, head of Rosneft Igor Sechin said speaking at the annual meeting of shareholders.

"Together with the Norwegian partner Statoil we started drilling two exploratory wells in the area Magadan-1 and Lisyansky depths in the Sea of Okhotsk. For these purposes modern drilling equipment, which underwent special testing and upgrading is used. Drilling of an exploratory well at the Lisyansky license block commenced this month, first 757 meters have been completed, and we hope to find a deposit with the resources of 100 million tonnes of oil equivalent," Sechin said.

Rosneft’s market cap exceeds that of Gazprom by $5 bln
The top official has also pointed out that the market capitalization of Russia's top oil producer had exceeded that of the gas giant Gazprom by $5 bln.

"We’re well ahead of other Russian companies in terms of market capitalization while the gap in valuation with the second-biggest company (in the country) Gazprom has exceeded $5 bln," Sechin said.

The estimated value of Rosneft's hydrocarbon reserves exceeds the company’s current market capitalization more than twofold factoring in the base price of the Vankor deal.

"Taking into account the base price of the Vankor deal the estimated value of Rosneft’s hydrocarbon reserves exceeds the current market capitalization more than twofold. Analysts and the stock certainly have to take this into consideration as it confirms the massive potential of shareholder value’s growth in case the influence of geopolitical factors subsides," Sechin said....MORE
I still miss Viktor Chernomyrdin, former head of Gazprom, who had a different, more communist approach to business:
"We meant to do better, but it came out as always"
Some other Viktorisms from Foreign Policy's obituary:
FP's Passport blog, Nov. 4, 2010:

Russia's Yogi Berra
Former Russian Prime Minister Viktor Chernomyrdin passed away on Wednesday morning at the age of 72. Best known in the West for co-chairing the Gore-Chernomyrdin Commission on nuclear safety, which largely failed in its goal of promoting bilateral cooperation between Washington and Moscow, Chernomyrdin presided over an extremely turbulent period of Russian history, including the controversial privatizations of the mid-1990s and the First Chechen War....
...Chernomyrdin is survived by ("approximately") two sons and a wealth of unforgettable lines. Here are a few of the best: 
On his background as energy minister: "I have grown up in the atmosphere of oil and gas."
On dealing with the frequently uncooperative Duma: "Government is not the organ in which one uses his tongue only."
On Russia's unstable party system: "Whatever party we establish, it always turns out to be the Soviet Communist Party."
On his critics: "If your hands are itchy, scratch yourselves in other spots."
On the future: "We will live so well that our children and grandchildren will envy us!"
On Ukraine's Orange Revolution:  "American ears are sticking out everywhere."
On his family: "I have approximately two sons."
On political efficiency: "We accomplished all items: from A to B."
On women: "You can't scare a woman with high-heeled shoes."
On language: I can talk to anyone in any language, but I try not to use that instrument."
On the life of the mind: "I am far from thought."...