OAO Rosneft has closed a number of transactions to take over TNK-BP, and the closing was announced as BP PLC Chief Executive Officer Bob Dudley and Rosneft Chief Executive Officer Igor Sechin met with Russian President Vladimir Putin near Moscow.
Rosneft paid $16.65 billion and 12.84% in Rosneft shares for BP’s 50% stake in TNK-BP, the companies said in a joint statement. As of closing, BP owns 18.5% total in Rosneft.
In addition, Rosneft paid AAR, a group of Russion billionaires who owned the other half of TNK-BP, $27.7 billion for their stake.
“We welcome BP as the major shareholder of Rosneft,” Sechin said. BP and Rosneft said they intend to identify possible projects in Russia and internationally. Dudley is expected to be elected to the Rosneft board during the company’s annual meeting on June 20.
Dudley said BP hopes to help Rosneft “grow production and reserves through brownfield, Greenfield, and unconventional opportunities.”
Sechin noted that the transaction with BP closed ahead of schedule.
“We are glad that BP has made a decision to remain one of the biggest investors in the Russian economy, thus admitting vast prospects of Russia's oil and gas industry and Rosneft's big potential,” Sechin said.
Dudley said, “This is a historic day for BP in Russia. BP has invested in Russia for more than 20 years and for a decade we have been Russia’s largest foreign investor through our involvement with TNK-BP.”
Earlier this month, the European Union antitrust authority approved Rosneft’s planned takeover of TNK-BP from BP and AAR in previously announced agreements (OGJ Online, Nov. 26, 2012).