22 Oct 2012
The TNK-BP joint venture has been profitable for BP, but the two companies have suffered relationship problems.
Russian state-owned Rosneft now wants to buy BP’s stake in the venture.
BP would receive between $10bn and $14bn cash, as well as a stake in Rosneft, which BP already owns a share of 1.25 percent.
BP has invested roughly $8bn into the TNK-BP venture since 2003, with dividends of about $19bn, accounting for about 10 percent of BP’s profits.
Despite the profitable BP-TNK venture, BP has had a difficult relationship with partners the AAR consortium, which is owned by four Russian billionaires.
Last year BP attempted to form an exploration alliance with Rosneft, though AAR was unhappy with this, and blocked the plan with a High Court Injunction.
Rosneft also made an offer last week to AAR, though neither deal has yet been finalised.
The purchase of BP’s part of the venture would make Rosneft the largest listed oil company in the world.
The deal is expected to be agreed this week.