BP this afternoon agreed to offload its 50 per cent stake in TNK-BP to Russian state-owned oil firm Rosneft for $12.3bn in cash and an 18.5 per cent shareholding.
Rosneft will pay $17.1bn in cash and shares representing 12.84 per cent to BP, but the British oil major will also acquire a further 5.66 per cent stake in the state-controlled company.
Compounded with BP’s existing 1.25 per cent stake in Rosneft, on completion of the deal BP will own almost 20 per cent of the Russian firm. Additionally, BP is to take two seats on Rosneft’s board.
In a secondary deal, Rosneft is to buy out the 50 per cent stake in TNK-BP of Russian consortium AAR, for a cash consideration of $28bn.
If the deal goes through, Rosneft will be the largest oil company in the world.