BP Sells 50% in TNK-BP to Rosneft

MOSCOW, November 22 (RIA Novosti) – BP, Rosneft and its main shareholder Rosneftegaz on Thursday signed a package of final and binding agreements providing for the sell-off of BP’s half-interest in TNK-BP to Rosneft, BP said.

Rosneft will pay $17.1 billion in cash and shares representing a 12.84 percent interest for BP’s 50-percent interest in TNK-BP.

BP will buy a 5.66 percent stake in Rosneft for $4.8 billion cash from the Russian government, raising its ownership of the Russian company, including a small existing interest, to 19.75 percent.

Russian Prime Minister Dmitry Medvedev approved the deal, government press secretary Natalya Timakova said.

BP ealier said it expects its net cash receipt from the deals to be $12.3 billion and to have two seats on Rosneft’s nine-member board.

BP and Rosneft have worked together since 1998 to explore offshore Sakhalin Island and are 50-50 owners of the joint venture Ruhr Oel GMBH that holds interests in 530,000 b/d of refining capacity in Germany.


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