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| BP set to get Rosneft offer for TNK-BP stake | BP set to get Rosneft offer for TNK-BP stake |
| (about 1 hour later) | |
| BP is expected to receive an offer from Russian oil giant Rosneft worth $28bn (£17bn) for its stake in the Russian TNK-BP joint venture. | BP is expected to receive an offer from Russian oil giant Rosneft worth $28bn (£17bn) for its stake in the Russian TNK-BP joint venture. |
| BBC business editor Robert Peston said an offer was "pretty certain". | BBC business editor Robert Peston said an offer was "pretty certain". |
| BP said in June that it was selling its half stake in TNK-BP following problems in relations with the Russian billionaires who own the rest of it. | BP said in June that it was selling its half stake in TNK-BP following problems in relations with the Russian billionaires who own the rest of it. |
| The deal to buy BP's stake would make Rosneft the world's largest publicly traded oil company. | The deal to buy BP's stake would make Rosneft the world's largest publicly traded oil company. |
| The key question in the potential deal is how much cash will be offered and whether BP will end up with a 10% or 20% stake in Rosneft. | The key question in the potential deal is how much cash will be offered and whether BP will end up with a 10% or 20% stake in Rosneft. |
| On Tuesday, the four Russian billionaires who own the other half of TNK-BP through their firm AAR signed a memorandum of understanding to sell their stake to Rosneft at a later date. | On Tuesday, the four Russian billionaires who own the other half of TNK-BP through their firm AAR signed a memorandum of understanding to sell their stake to Rosneft at a later date. |
| Rosneft has stressed that neither deal has yet been finalised. | Rosneft has stressed that neither deal has yet been finalised. |
| "We continue to evaluate a number of opportunities and will update the market as and when appropriate," the company said in a statement. | "We continue to evaluate a number of opportunities and will update the market as and when appropriate," the company said in a statement. |
| In July, AAR expressed an interest in increasing its share of the joint venture to 75%. | In July, AAR expressed an interest in increasing its share of the joint venture to 75%. |
| This gave it "preferred bidder" status and triggered a 90-day period in which no other interested party would be allowed to conclude a deal with BP. | This gave it "preferred bidder" status and triggered a 90-day period in which no other interested party would be allowed to conclude a deal with BP. |
| That period ended at midnight on 17 October. Other bidders were then given a deadline of 0900 BST on Thursday to make offers for the business. | That period ended at midnight on 17 October. Other bidders were then given a deadline of 0900 BST on Thursday to make offers for the business. |
| BP's board is expected to discuss the offers on Friday and reach a decision over the weekend. | |
| Relations between BP and AAR had been strained for some time, but the problems came to a head last year when AAR was unhappy about BP's attempt to form an exploration alliance with Rosneft. It secured a High Court injunction blocking the plan. | Relations between BP and AAR had been strained for some time, but the problems came to a head last year when AAR was unhappy about BP's attempt to form an exploration alliance with Rosneft. It secured a High Court injunction blocking the plan. |
| TNK-BP is important to BP financially as it accounts for about 10% of its profits. | |
| Since 2003, BP has invested $8bn into TNK-BP and has received about $19bn in dividends. | |
| TNK-BP produces about two million barrels of oil and gas per day. BP produces about 2.3 million barrels, excluding TNK-BP. |