OIL giant BP this morning said it would buy back $8bn ($5.2bn) of shares, just a day after completing the sale of its stake in TNK-BP.
The share buyback programme will give BP investors an amount similar to the value of the FTSE firm’s original investment in TNK-BP.
Russian state-owned producer Rosneft yesterday completed its $55bn (£36bn) takeover of TNK-BP, making it the largest listed oil producer in the world.
It paid $12.3bn in cash to BP, which will get a near 20 per cent stake in Rosneft.
BP will retain the additional $4.5bn from the sale of its stake in TNK-BP to reduce group debt.
“We expect our stake in Rosneft will generate long-term value for BP and its shareholders. But this buy-back programme should also allow our shareholders to see benefits in the near-term from the value we have realised by reshaping our Russian business,” BP chairman Carl-Henric Svanberg said yesterday
Rosneft also paid almost $28bn to the AAR consortium, which owns the remaining 50 per cent stake of TNK-BP.