Deadline for bidding on Rosneft extended
July 10, 1998 The government has extended for 3 months the deadline for bidding on Rosneft.
Rosneft is the largest oil company that has not been privatised, but the country's financial crisis and falling oil
prices have discouraged bidders. The new deadline is Oct. 27.
The government cancelled one attempt to sell the company earlier this year when no one offered the minimum asking
price of $ 2.1 bn for a 75 % stake in the company.
The price was lowered to $ 1.6 bn in early June, but there was still little interest as the designated July 16
deadline approached. Officials say they will not drop the price any further.
"We decided to extend the deadline in order to sell Rosneft at the planned price, ... given the drop in world oil
prices, we can't get a good price for it," First Deputy State Property Minister Alexander Braverman said.
Shell and British Petroleum have said recently they were no longer interested in Rosneft. Shell had been expected to
bid for the company with Gazprom and Lukoil.
