News Column

BP Tight-lipped About Possible Deal With Russian Oil Firm Rosneft

Oct. 19, 2012

Oil giant BP was Friday reported to be considering a multi-billion offer by state-owned Russian company Rosneft for the sale of its share in the troubled Russian joint venture, TNK-BP.

BP Friday declined to comment on media reports that its board was considering an offer worth around 28 billion dollars made by the Kremlin-backed oil firm.

The cash-and-shares deal would give BP between 15 and 20 billion dollars in cash plus a stake of between 10 and 20 per cent in Rosneft, reports said.

If approved, it would transform the Russian concern into one of the world's largest oil companies, with daily crude output of more than 3 million barrels, while also securing BP's future in Russia.

It was reported from Moscow earlier this week that the four Russian oligarchs behind the consortium AAR have agreed to sell their 50-per-cent stake in TNK-BP to Rosneft at a later date.

Meanwhile, Russian agency Interfax reported Friday that a manager of TNK-BP in Moscow had been arrested on suspicion of fraud. The agency quoted the Russian Interior Ministry, but left open whether the arrest was in any way connected with a possible deal between Rosneft and BP.

Source: Copyright 2012 dpa Deutsche Presse-Agentur GmbH

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