BP ponders a share buyback as new partner Rosneft hails $3bn benefits of Russian tie-up

KREMLIN-controlled Rosneft chief Igor Sechin yesterday said that its takeover of TNK-BP could yield up to $5bn (£3bn) in synergy savings, largely on projects in north and eastern Russia.

Synergies from the optimisation of current upstream, refining and marketing projects of both gas and oil could benefit the state-controlled energy producer to the tune of $3bn to $5bn.

Sechin added the takeover, which would combine Rosneft resources with those of TNK-BP, would provide access to oil fields closer to China than its own sites.

Rosneft is already in talks with TNK-BP to use its infrastructure to transport oil from TNK-BP’s oilfields, Sechin said yesterday.

He reassured investors that dividend payouts would be maintained at 25 per cent of net profits after consolidation.

Meanwhile, share buybacks could be among the options on the cards next year for BP when the deal with Rosneft is completed.

In a statement, BP said it would “offset any dilution to earnings per share”, and a share buyback programme is thought to be one option to be explored.