BP’s heads of terms agreement to sell its 50% TNK-BP stake to Russian oil giant Rosneft was major news this week. But there was little mention of how oil and gas reserves would be treated as part of the transaction.
This is perhaps the most important aspect of this deal because reserves are one of the main factors that go into valuing an oil company. “On completion of the proposed transaction, BP expects to hold 19.75 per cent of Rosneft shares, including BP’s existing holding of 1.25 per cent, and to have received $12.3 billion in cash,” according to BP’s press release. Keep reading →
France’s Socialist Party (PS) newly-elected President Francois Hollande (R) reacts on stage, flanked by (from L, 1st row) socialist Arnaud Montebourg, socialist President of the Poitou-Charentes region Segolene Royal, Hollande’s campaign political advisor Jean-Michel Baylet, Hollande’s campaign manager Pierre Moscovici, Hollande’s campaign political advisor Harlem Desir, Hollande’s campaign chief of staff Faouzi Lamdaoui, Hollande’s campaign political advisor Martine Aubry and Hollande’s companion Valerie Trierweiler, at the Place de la Bastille in Paris on May 7, 2012, after the announcement of the first official results of the French presidential second round. Hollande had won with 51.62 percent of the vote to 48.38 percent for Sarkozy on May 6, 2012, becoming France’s first Socialist president since Francois Mitterrand left office in 1995. AFP PHOTO / FRANCK FIFE
The last 48 hours shifted the political landscape across Europe, and with it, the debate over energy policy. Keep reading →