TNK-BP to buy Oxy's Russian JV interests

TNK-BP has agreed to buy Occidental Petroleum Corp.'s 50% interest in the Vanyoganneft joint venture in western Siberia for $485 million.

Jan. 12, 2007

By OGJ editors
HOUSTON, Jan. 12 -- TNK-BP has agreed to buy Occidental Petroleum Corp.'s 50% interest in the Vanyoganneft joint venture in western Siberia for $485 million.

The deal is expected to close in the first quarter. Oxy expects to record a gain of about $400 million.

At yearend 2006, Oxy's net proved Vanyoganneft reserves were 33 million boe and its net production from Vanyoganneft currently averages 22,600 b/d of oil. The license governing the JV is due to expire in January 2013, although it may be extended under Russian law.