BP Chief to Help Smooth Rosneft, TNK-BP Integration

MOSCOW, December 20 (RIA Novosti) – British oil major BP’s CEO Robert Dudley will help oversee Russian oil giant Rosneft’s integration with TNK-BP to help introduce best international business standards, the companies said in a statement on Thursday.

Rosneft CEO Igor Sechin held a working meeting with BP CEO Dudley on December 19 to discuss the issue of integration.

“Bob Dudley will become a member of the steering committee coordinating the integration that will be chaired by Igor Sechin,” the statement said.

Both sides confirmed their commitment to the companies’ efficient integration and agreed that “the process is a unique opportunity to bring many of the world’s best business and technical practices into the combined company in a short timeframe.”

In October Rosneft announced the all-out purchase of TNK-BP from British oil major BP and the AAR consortium of Russian billionaire shareholders.

Under the deal, BP will receive $17.1 billion in cash for its 50 percent stake plus stock representing 12.84 percent of Rosneft’s shares, while the AAR consortium of Soviet-born billionaire shareholders will sell its 50 percent stake in the joint venture “for cash consideration of $28 billion.”

“BP is committed to Rosneft’s success throughout the integration process and beyond and we see significant potential for profitable partnership between our companies… By owning 100 per cent of TNK-BP Rosneft will unlock significant value. I believe that this is a good outcome for AAR, Rosneft and Russia,” Dudley said.


(Updates previous version by clarifying Dudley’s role, changes headline accordingly)

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