BP PLC will sell its stake in a huge Russian energy venture for $17.1 billion, extending the British oil giant’s retrenchment and consolidating the Kremlin’s control over Russia’s vast petroleum assets.
OAO Rosneft, a Kremlin-controlled oil and gas conglomerate, will buy BP’s 50 percent stake in TNK-BP for cash and shares representing 12.84 percent of Rosneft, BP said Monday. BP also said it anticipates getting two seats on Rosneft’s board.
The deal gives Rosneft, which also reached a deal to buy out out BP’s partners in TNK-BP, control of about 33 percent of Russia’s crude oil production or approximately 4 million barrels of crude oil per day.
Shares of BP, which will use $4.8 billion of the sale’s proceeds to increase its stake in Rosneft by 5.66 percent to 19.75 percent, rose two cents to $43.12 in premarket trading.