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. Last Updated: 07/27/2016

Rosneft Snaps Up Yukos Filling Stations

Itar-TassA man passing a Rosneft stand at the Russian Petroleum and Gas Congress, running at the Expocenter till Thursday.
Rosneft has bought about 600 filling stations that belonged to bankrupt oil firm Yukos for 21.2 billion rubles ($819 million), the company said Tuesday.

Rosneft said its 100 percent subsidiary Neft-Aktiv bought Unitex, which has 495 filling stations and a number of product terminals in European and southern Russia, for 16.3 billion rubles.

Neft-Aktiv also bought more than 100 retail stations from another lot of the Yukos assets for 4.9 billion rubles.

Unitex, a little-known company whose owners have not been disclosed, paid 17.5 billion rubles ($676 million) in auctions that included the assets bought by Rosneft.

The purchase of the filling stations would help Rosneft become a leader in the retail market in Russia, Rosneft said.

"Having added refining capacity lately, and with our desire to expand the downstream business generally, it's clear that it's a very profitable business and will continue to grow, and the margins are attractive," said Peter O'Brien, Rosneft's finance vice president. "And with the new production volumes that we expect over the next few years, it's clear that it fits into the strategy."

On Monday, Rosneft CEO Sergei Bogdanchikov said the company was in talks to buy other assets acquired by the unknown company Prana in an auction in May. Prana beat Rosneft with a $3.9 billion bid for a lot that included Yukos' headquarters.

n Rosneft will produce a record 101 million tons of crude this year, more than one-fifth of the country's production, company vice president Sergei Kudryashov said. Tomskneft and Samaraneftegaz, which Rosneft acquired from Yukos at auctions, will be included on Rosneft's balance sheet in the second half, he said.

Reuters, AP, Bloomberg