RUSSIAN state oil producer Rosneft this afternoon became the biggest oil company in the world, overtaking ExxonMobil, as it completed its $55bn (£36bn) takeover of TNK-BP from UK oil giant BP and four Russian tycoons.
BP will net itself $12.3bn in cash, plus a near 20 per cent stake in the state-owned Russian energy firm for its 50 per cent stake.
It will also give BP two seats on the Rosneft board, including one for chief executive Bob Dudley.
“This is a historic day for BP in Russia,” Dudley said in a statement.
“BP has invested in Russia for more than 20 years and for a decade we have been Russia's largest foreign investor through our involvement with TNK-BP.”
For the remaining stake, Rosneft also paid out $28bn in cash to the AAR consortium.
The deal was first announced in October last year after months of negotiations, and hands Rosneft an expert international shareholder, extra oil output and income to explore Russia’s vast reserves.
TNK-BP was created in 2003 by a merger of BP's Russian operations and those of the AAR consortium of four Soviet-born billionaires, some of whom will stay in the oil industry by setting up international investment business.