BP grabs near-20% stake in Rosneft

Oct 22 2012

BP is to take a near-20% stake in what will become the world's largest publicly listed oil producer as part of a £16.7 billion deal.

State-backed Russian energy firm Rosneft has agreed to buy BP's 50% stake in its troubled TNK-BP joint venture for 17.1 billion US dollars (£10.7 billion) in cash and 9.7 billion US dollars (£6 billion) worth of Rosneft shares.

The deal, which is subject to state and regulatory approvals, will see BP grab a 19.75% stake in Rosneft, which will become the world's biggest publicly traded oil company with daily crude output of more than three million barrels.

BP chairman Carl-Henric Svanberg hailed the move as "an important day for BP".