Rosneft targets BP's Russian stake
Jul 25 2012
Russia's state oil giant Rosneft has confirmed its interest in BP's stake in a joint venture in the country.
TNK-BP, which is among the top ten privately-owned oil companies in the world, was built from the merger of BP's Russian oil and gas assets and those of four tycoons in the Alfa, Access/Renova group (AAR).
Since BP announced its intention to sell the 50% stake in early June, AAR has told the UK oil giant that it would like to increase its shareholding.
It has a 90-day period within which to complete a deal but BP will still be able to hold negotiations with Rosneft during this time.
The Russian company said: "Rosneft believes that an acquisition of BP's interest in TNK-BP would be in the best interest of both Rosneft's and BP's shareholders and would lead to further development of TNK-BP."
BP and Russian oil company Rosneft last year offered to buy out AAR for about £20 billion as part of an attempt to salvage their Arctic exploration tie-up, which AAR had blocked.
TNK-BP has exploration and production assets as well as downstream marketing operations in Russia and Ukraine, alongside interests in Brazil, Venezuela and Vietnam.
It is the third biggest oil producer in Russia behind Rosneft, which the state controls, and second-placed Lukoil, which is owned by Russian investors. The business accounted for more than quarter of BP's production and 90% of its 2011 dividend.
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