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Strategic investors subscribe for $3bln of Rosneft shares

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Rosneft president Sergei Bogdanchikov said that U.K.-based BP had subscribed for $1 billion worth of shares, Malaysian oil company Petronas for $1.5 billion, and China National Petroleum Corporation for $500 million.
STRELNA, July 16 (RIA Novosti) - Rosneft, Russia's state-run crude producer, said Sunday that three strategic investors had subscribed for $3 billion of the company's shares floated during the initial public offering earlier this month.

Rosneft president Sergei Bogdanchikov said that U.K.-based BP had subscribed for $1 billion worth of shares, Malaysian oil company Petronas for $1.5 billion, and China National Petroleum Corporation for $500 million.

Bogdanchikov said the three investors had purchased 23% of shares issued by Rosneft but the company had no plans to float additional shares.

"As for further sales, we have no such plans and the shares whose volume was fixed by the government have already been sold," Sergei Bogdanchikov said, adding that Rosneft would not stop investors from buying its shares on the secondary market.

Rosneft closed the books on its IPO Friday, placing 1.4 billion ordinary shares (GDRs abroad) in Moscow and London with a total worth of $10.4 billion.

The price for Rosneft's GDRs on the first day of floating on the London Stock Exchange (LSE) fluctuated between $7.55 and $7.95, settling down to $7.6 by the closing time. Rosneft has been listed under the ticker ROSN.

The LSE is expected to start free trading of Rosneft GDRs on July 19 after the U.K. Financial Services Authority puts the Russian oil producer on its official list.

Bogdanchikov said that Rosneft planned to increase oil production by 8% this year.

He said Rosneft's share in overall crude production in Russia was 16.4% and the company planned to increase it to 20%.

"We are planning to produce 100 million tons (735 mln bbl) by 2010 and 140 million tons (1.03 bln bbl) by 2015 through natural production growth," Bogdanchikov said.

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