Rosneft has obtained approval from the German Federal Ministry of the Economy and Energy (Bundesministerium für Wirtschaft und Energie) to dissolve its Ruhr Oel GmbH (ROG) joint venture (JV) with BP.
Rosneft and BP obtained all the regulatory approvals for the deal in a very short time (earlier, on the 21 December 2015 an approval was obtained from the German antitrust regulator Bundeskartellamt, and on 1 February 2016 the deal was approved by the European Commission).
The JV restructuring process is expected to be completed by the end of 2016. This will enable Rosneft and BP to redirect their petrochemical and refining strategies in Europe. The deal demonstrates Rosneft's move to a whole new level of operational activity in Western Europe and confirms the company's commitment to maximise added value for its shareholders.
The Gelsenkirchen refinery will be fully owned by BP, enabling it to consolidate the company's refining business in Ruhr's industrial area in the heart of Europe. This step will be part of BP's effort to simplify operations and improve efficiency.
The parties have confirmed their intention to provide maximum assistance to each other during the ROG restructuring.
In January 2016, Rosneft and BP announced that they had signed a binding agreement to dissolve the existing refining JV Ruhr Oel GmbH as they move toward completion of the previously announced restructuring of the two companies’ German refining and petrochemical venture.
When the restructuring is completed later this year, Rosneft will become a direct shareholder and increase its shareholding in the Bayernoil refinery from 12.5% to 25%; the MiRO refinery from 12% to 24%; and the PCK refinery from 35.42% to 54.17% In exchange, BP will consolidate 100% of the equity of the Gelsenkirchen refinery and the solvent production facility DHC Solvent Chemie.
Adapted from press release by Rosalie Starling
Read the article online at: https://www.hydrocarbonengineering.com/refining/12022016/rosneft-and-bp-obtain-approvals-to-dissolve-ruhr-oel-gmbh-2464/