Live Currency Rates
  Quotes: US MENA   Enter Symbol: NewsLetter: Search: advanced

BP, Rosneft say they have signed off on TNK-BP sale  Join our daily free Newsletter

MENAFN - AFP - 22/11/2012

No. of Ratings : 0
Add to Mixx!


(MENAFN - AFP) British oil major BP and Russian group Rosneft said Thursday that they have signed a final agreement on the sale by BP to Rosneft of half of the third biggest Russian oil company, TNK-BP, as part of a major shift in strategy by the British company.

"BP, Rosneft and Rosneftegaz -- the state-owned parent company of Rosneft -- have signed definitive and binding sale and purchase agreements for the sale of BP's 50 percent interest in TNK-BP to Rosneft and BP's investment in Rosneft," a BP statement said.

The deal is still subject to approval by regulatory authorities and should be completed "in the first half of 2013," it added.

Once all parts of the complex transaction have been finalised, Rosneft is set to become one of the world's biggest oil companies while BP stands to gain crucial access to Arctic oil reserves.

On October 22, Rosneft announced that it had reached an agreement with BP and a consortium of Russian billionaires known as AAR to purchase their respective 50 percent holdings in TNK-BP, a lucrative oil producer that was mired in a dispute among its shareholders.

Under the terms of its deal with Rosneft, BP is to receive 17.1 billion in cash and shares giving it 12.84 percent of the equity in Rosneft.

BP also plans to buy a separate 5.66 percent stake in Rosneft from the Russian state for 4.8 billion, which along with a small stake of 1.25 percent that BP already owns, would give it 19.75 percent of Rosneft's equity in all.

That acquisition was "an integral part of the transaction," BP noted.

Rosneft added in a separate statement that it was also close to agreement with AAR on the acquisition of the other half of TNK-BP for 28 billion.

When the transactions have been completed, Rosneft is set to become the world's biggest oil company in terms of market capitalisation.

BP, which wants to reposition itself after the Gulf of Mexico oil spill disaster in 2010, would then own a major share of the Russian group and could thus have access to major exploration projects in the Arctic, analysts say.


  MENA News Headlines

Live Currency Rates



Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  

Middle East North Africa - Financial Network

Main News
News By Industry
News By Country
Marketwatch News
UPI News
Comtex News

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details


Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks

Saudi Arabia 

Investment Game
Economic Calendar
Financial Glossary

Portfolio Tracker


Financial Calculators

RSS Feeds [XML]

Corporate Monitor


Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters

© 2000 All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help