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An employee in uniform stands near a Rosneft petrol station in St.Petersburg October 23, 2012. Russian oil company Rosneft tightened its grip on Russia's oil industry on Monday with a $55 billion deal to buy TNK-BP that also makes Britain's BP a one-fifth shareholder in the state-controlled company.
An employee in uniform stands near a Rosneft petrol station in St.Petersburg October 23, 2012. Russian oil company Rosneft tightened its grip on Russia's oil industry on Monday with a $55 billion deal to buy TNK-BP that also makes Britain's BP a one-fifth shareholder in the state-controlled company.
(Alexander Demianchuk/Reuters)

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As Rosneft swallows TNK-BP, will it become bloated?

Rosneft will become the world’s biggest listed crude producer following its $55-billion (U.S.) swoop on Russia’s third-biggest oil company. Igor Sechin’s new behemoth also expects to generate $3-billion to $5-billion of cost synergies from scooping up its smaller rival. If Rosneft can apply TNK-BP’s oilfield know-how to improve production at its own fields, the cost and revenue benefits of the Russian oil shake-up could indeed climb high.