BP is closing in on a deal that would
result in the sale of most of its Russia-based assets to Rosneft, a state-owned
oil and gas company with close ties to the government of Vladimir Putin.
BP said Monday it was in "advanced
discussions" regarding the sale of its 50% stake in TNK-BP, and named
Rosneft as the potential buyer.
The TNK-BP partnership has been a lucrative
one for BP. But the relationship has been difficult at times. BP's Russian
offices have been raided frequently, and TNK has in the past blocked BP from
doing business with Rosneft.
Completing the sale would help simplify
BP's (BP) operations in Russia, a country in which the central government
increasingly exerts influence in the oil and gas industry. BP would likely
receive a stake in Rosneft, and possibly a board seat.
The sale also fits broadly into the
strategy pursued by BP CEO Bob Dudley in the wake of the Deepwater Horizon
spill disaster in the Gulf of Mexico. The company has been unloading assets,
including the sale of $7 billion in oil and gas assets to oil firm Apache.
Related: Why its Russian mess should not
surprise BP
While no final agreement has been
announced, the New York Timesreported Sunday that BP's board has approved the
sale to Rosneft, and has provided BP CEO Robert Dudley with negotiating
parameters.
U.S.-listed shares of London-based BP
increased 3% in recent days as rumors about the deal circulated in the media
and on trading floors.
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