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Publish Date : 23-Mar-2013

In October 2012 BP and Rosneft announced agreement in principle for the sale and purchase of BP\'s 50 per cent interest in TNK-BP for $17.12 billion in cash and 12.84 per cent of Rosneft shares.

Following adjustments in accordance with the terms of the agreement excluding a $0.71 billion dividend received by BP in December 2012 from TNK-BP, Rosneft has today paid BP a final amount of $16.65 billion.

BP has used $4.87 billion of the cash consideration to acquire 5.66 per cent of Rosneft shares from ROSNEFTEGAZ. This amount includes the adjustment from the offer date to completion according to the terms of the purchase agreement.

As a result of these transactions BP has received $12.48 billion net in cash (including the $0.71 billion dividend received in December 2012) and, together with its existing 1.25 per cent shareholding in the company, now holds a 19.75 per cent stake in Rosneft, Russia\'s largest oil company.

Commenting on the BP transaction, Rosneft President and Chairman of the Management Board Igor Sechin said: \"We are delighted to close this transaction ahead of schedule and would like to thank our partners in BP for their cooperation throughout the process. We welcome BP as a strategic investor in Rosneft and look forward to their involvement in forming the future strategic direction of the company through its representation on the Rosneft Board of Directors.

\"We are closing the deal of acquiring BP\'s share in TNK-BP earlier than we previously planned and we want to thank our partners from BP for their cooperation throughout the process. We welcome BP as the major shareholder of Rosneft, which will take part in shaping the Company\'s strategy though its participation in the Board of Directors.

\"We hope that BP\'s vast experience will allow us to maximize synergetic effect on several directions during the process of integration. This deal is a part of the current Rosneft strategy aimed at developing cooperation with the world biggest companies. We are sure that a transition to a new level of our relations will bring benefits not only to Rosneft and its shareholders, but also to Russian oil industry in general.

\"We are glad that BP has made a decision to remain one of the biggest investors in the Russian economy, thus admitting vast prospects of Russia\'s oil and gas industry and Rosneft\'s big potential.\"

BP Group Chief Executive Robert Dudley said: \"This is a historic day for BP in Russia. 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. We aim to continue that success with today\'s transaction, which increases our stake in Rosneft and gives us a wonderful opportunity to forge a new partnership with a great Russian oil company.\"

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