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PostNL N.V. Message Board

  • bardinja bardinja Dec 8, 2000 10:32 AM Flag

    Russian Co is World's Best Oil Company

    Another Russian company (but not TNT) was named
    the World's Best Oil Company by the prestigious
    Financial Times Group, FT-Energy. The award is "a vote
    confidence not just for TNK, but for the whole
    Russian oil industry and the Russian government's

    efforts to improve the investment climate."

    why then are Russian oil companies selling at PE
    ratios 1/5 or 1/10 of those of its emerging market peers
    such as China, Argentina, and Brazil?

    TNK Named World's Best Oil Company
    By Brad
    Staff Writer
    In a year when it weathered
    months of litigation, accusations of judicial
    manipulations, a police raid,
    an Audit Chamber investigation
    and the wrath of the U.S. State Department, Tyumen
    Oil Co. has
    been named the best oil and gas firm
    in the world.
    A specialist branch of the
    prestigious Financial Times Group, FT-Energy, gave TNK its
    "Best Oil
    and Gas Company of 2000" award in a New
    York ceremony Thursday night.
    FT-Energy, which
    bills itself as "the world's most comprehensive
    provider of global energy industry
    news," said TNK won
    for its "phenomenal growth in the past year, breaking
    into the world's top 15
    oil firms and showing
    remarkable entrepreneurial spirit in extremely trying

    "This is a tremendous honor to prevail
    over such a distinguished group of established
    companies," TNK president and CEO Simon Kukes
    said in a telephone interview Friday from

    TNK, considered the country's No. 4 oil major
    after LUKoil, Yukos and Surgutneftegaz, beat out

    finalists Shell, ATP and British Gas for the honor.

    Kukes, a Russian-born former executive at U.S. giant
    Amoco, said the award is "a vote of
    confidence not
    just for TNK, but for the whole Russian oil industry
    and the Russian government's
    efforts to improve
    the investment climate...."

    "Russia has a
    PR problem it generally doesn't promote itself very
    well abroad," said Alexander
    Wostmann, editor of
    Alexander's Oil and Gas Connections, in Cologne, Germany....
    "This award is a great recognition that its oil
    industry and its government is serious about
    TNK received wide applause in September when
    it won what many analysts consider Russia's most

    transparent and fair tender for a major state enterprise,
    paying $1.08 billion for 85 percent of Onako,
    nation's No. 14 oil company.
    TNK is also the only
    Russian company since the 1998 financial meltdown to
    secure a major loan
    guarantee from the
    U.S.-government owned Export-Import Bank some $600 million to
    upgrade its
    Ryazan refinery and develop the massive
    Samotlor field in Siberia.
    The U.S. State Department
    blocked the loan guarantees last December, then reversed
    its position in
    April, without explanation. Some
    reports said at the time that the U.S. move was in
    response to
    TNK's controversial acquisition of rival
    Sidanko's major production unit Chernogorneft. TNK's

    move outraged BP Amoco, which paid $571 million for a
    10 percent stake in Sidanko in 1996.
    In the
    interview Friday, Kukes denied the loan delay had anything
    to do with Chernogorneft and said
    that TNK's
    relationship with BP had been patched up, adding that
    Chernogorneft would "absolutely"
    be returned to Sidanko
    "We have very good relations with BP now and
    I personally have very good relations with key

    executives," he said.
    With the purchase of Onako, the
    acquisition of Chernogorneft and Kondpetroleum another

    production unit controversially wrestled from Sidanko the
    purchase of a Ukrainian refinery and a deal
    Texaco to expand its Moscow retail network, TNK has
    outpaced the industry in 2000.
    "TNK was able to
    achieve this phenomenal growth because it is
    well-managed, ambitious and its
    managers are highly
    qualified," said Valery Nesterov at Chase. "It is on its way
    to becoming a
    successful global company."