Rosneft Targets $120 Billion Valuation After Meeting With Putin

OAO Rosneft (ROSN), Russia’s largest oil producer, plans to increase its market value as much as 30 percent to $120 billion this year after incorporating TNK-BP.

Acquisitions, growth in reserves and higher output rates will drive up shares at the state-controlled company, Russian President Vladimir Putin said in a meeting with Rosneft head Igor Sechin, according to a transcript on the Kremlin’s website.

“We accept this as a target,” said Sechin, also a former deputy of Putin. The lower end of the target is $100 billion, which compares with a current value of about $92.8 billion.

The $55 billion purchase of Russia’s TNK-BP, due to close this half, is set to vault Rosneft past PetroChina Co. to become the world’s biggest publicly traded oil producer by volume. Moscow-based Rosneft also plans to expand abroad, including through reciprocal deals that allow Exxon Mobil Corp. (XOM), Statoil SA and Eni SpA (ENI) to explore in Russia.

Rosneft has already prepared applications to work off Norway with Stavanger-based Statoil, Sechin said.

To contact the reporter on this story: Stephen Bierman in Moscow at sbierman1@bloomberg.net

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net

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