Rosneft finalizes plans to buy AAR's half of TNK-BP

OAO Rosneft finalized plans to buy a 50% stake in TNK-BP from the AAR Consortium (Alfa Group, Access Industries, and Renova Group) for $28 billion as outlined in a previously announced agreement in principle.

Separately, Rosneft recently finalized plans with BP PLC for Rosneft to buy the other half of the Russian oil venture in cash and stock in a deal similar to the AAR pact. BP will own nearly 20% interest in Rosneft and have two representatives on the board (OGJ Online, Nov. 26, 2012).

Closing of Rosneft’s acquisition from AAR, subject to approvals from Russian and European antitrust regulators, is expected during first-half 2013. Rosneft Pres. Igor Sechin said his company planned to begin the integration process as soon as possible.

German Khan, member of the Alfa Group supervisory board and TNK-BP executive director, said the transaction is expected to boosts Russian economy potential and reflect “Russia’s leading role on the global oil and gas industry.”