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| BP sells TNK-BP stake to Russia's Rosneft | |
| (35 minutes later) | |
| Oil giant BP has agreed to sell its 50% stake in TNK-BP to Russia's Rosneft in return for cash and shares. | Oil giant BP has agreed to sell its 50% stake in TNK-BP to Russia's Rosneft in return for cash and shares. |
| The UK firm will get $17.1bn (£10.7bn) cash and a 12.84% stake in Rosneft, enabling BP to continue to share in Russia's vast energy resources. | The UK firm will get $17.1bn (£10.7bn) cash and a 12.84% stake in Rosneft, enabling BP to continue to share in Russia's vast energy resources. |
| BP has agreed to eventually use some of the cash to buy further Rosneft shares, taking its stake to 19.75%. | |
| Rosneft is also buying the other half of TNK-BP from the AAR consortium of Russian billionaires for $28bn. | |
| TNK-BP is one of Russia's biggest oil firms, but dealings between BP and its joint venture partners were difficult. | TNK-BP is one of Russia's biggest oil firms, but dealings between BP and its joint venture partners were difficult. |
| The acquisition of the stake will make Rosneft the world's largest publicly-traded oil group. | The acquisition of the stake will make Rosneft the world's largest publicly-traded oil group. |
| BP said that once the proposed transaction gets the necessary shareholder and regulatory approval, it will use $4.8bn of the cash received on buying a further 5.66% of Rosneft shares. | |
| The purchase of BP's TNK-BP stake would make Rosneft the world's biggest publicly-traded oil company. | |
| Although BP's involvement in the Russian joint venture has been lucrative, paying billions of dollars in dividends to the UK company, relations with its partners have often been fraught with disagreement. | |
| A tie-up with Rosneft would keep BP in Russia so that it can continue to explore and exploit the country's vast energy resources, including in the Arctic region. Rosneft would be able to tap into BP's expertise in exploring in difficult and potentially hazardous conditions. |