BP formalises tie-up terms

OIL MAJOR BP, Rosneft and its parent Rosneftgaz yesterday formalised terms for their tie-up.

The deal, announced last month, involves BP selling its 50 per cent stake in TNK-BP to Kremlin-controlled Rosneft, in exchange for $12.3bn (£7.7bn) and a 18.5 per cent stake in the state-backed producer.

The Russian government approved BP’s purchase from Rosneftgaz of a further 5.66 per cent stake in Rosneft for $4.8bn.

On completion of the deal, BP will own 19.75 per cent in Rosneft when combined with its existing 1.25 per cent stake.

Completion of the deal is expected in the first half of 2013.