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. Last Updated: 07/27/2016

State Plans to Amend Terms of Tyumen Tender

Russia will amend the terms of a forthcoming tender of the Tyumen Oil Co., or TNK, after some officials said the sale could favor certain bidders, energy officials said Thursday.


The change could intensify competition between the two companies said to be competing for the stake, the financial firm Alfa Group and Rosneftinvest, an unknown.


Fuel and Energy Ministry spokes-man Sergei Slesaryev said the ministry had studied the terms of the investment tender for a 40 percent stake and had agreed changes were needed.


"There is the possibility of eliminating the inequality [of conditions for bidders] without substantial changes to the terms of the investment tender and, consequently, without moving the sale or privatization dates forward," he said.


The quarrel over fair terms centers on how bids should account for the value of certain TNK equipment and assets.


Under the tender's original terms, a bidder either had to deposit $88 million in cash, the "value" of the items, or present proof that it owned the items. But with the new terms, Slesaryev said, only cash would be accepted.


Victor Pali, the head of TNK oil production unit Nizhnevartovskneftegaz and an opponent of the 40 percent sale, had said Alfa Group units had stakes in the equipment and assets, giving them an edge. Alfa Group could not be reached for comment.