OREANDA-NEWS. August 10, 2010. RUSIA Petroleum, which holds the license for Kovykta, has changed ownership. According to TNK-BP International’s 2Q10 report published, RUSIA was transferred from TNK-BP International to TNK-BP Ltd., reported the press-centre of OTKRITIE Financial Corporation.

The change of ownership was necessary for TNK-BP International, as the fact that on the fall RUSIA may to declare bankruptcy, and it would lead to TNK-BP International early redemption of Eurobonds.

View: The deal is seen as a protective measure, and will not lead to any changes in terms of company assets. We believe that this news will not have any impact on TNK-BP shares, though the news will have a positive impact on the company’s Eurobonds market, as the risk of early redemption has been mitigated.

Valuation and Action: TNK-BP trades on a 2010 EV/EBITDA of 2.6x. We reiterate our BUY rating on TNK-BP Holding, with a target price of USD2.52/share.