Rosneft to buy BP’s TNK stake in $26bn deal

BP HAS received a cash and shares bid for its 50 per cent stake in TNK-BP from Russian state-controlled oil producer Rosneft, it is understood, putting Rosneft close to dominating Russia’s oil industry.

Sources said that Rosneft earlier this week agreed a bid for Russian consortium AAR’s 50 per cent stake in TNK-BP, the country’s third-largest oil producer.

It is thought that Rosneft’s bid submitted to BP values TNK-BP in its entirety at over $50bn (£31bn). BP is expected to consider the offer at a board meeting scheduled for this morning.

BP said last month that it would consider buying a stake in Rosneft following a sale of TNK-BP, although the value of that stake is as yet unknown.

City A.M. understands that BP and AAR could each take minority stakes in Rosneft. Chief executive Igor Sechin is in London to hammer out details of a potential deal. AAR, owned by four Russian tycoons, has confirmed it would not bid for BP’s stake of TNK-BP, opening the way for Rosneft to make an offer.

Andrew Neff, senior energy analyst at IHS Energy, said if Rosneft ends up with 100 per cent of TNK-BP, it would boost the state-owned firm above ExxonMobil as the world’s largest publicly-traded oil producer.