Rosneft Consolidates 100% of TNK-BP

As a result of these transactions BP has received 12.48 billion in cash (including a $0.71 billion dividend it received from TNK-BP in December 2012) and, together with its existing 1.25% shareholding in the company, now holds 19.75% in Rosneft.

In correspondence with separate agreements Rosneft has finalized the deal of acquiring AAR's 50% share for cash consideration of $27.73 billion. The above mentioned sums payed for acquiring of TNK-BP shares from BP and AAR are calculated basing on the terms of purchase price formation, stipulated by the corresponding purchase agreement.

Upon completion of a number of independent transactions Rosneft has consolidated 100% of TNK-BP and has become the largest publicly traded oil and gas company in the world by hydrocarbon reserves and production.

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.

“We hope to help Rosneft to deliver synergies through its acquisition of TNK-BP and to grow production and reserves through brownfield, greenfield and unconventional opportunities as Rosneft strengthens its position among the world’s leading global energy companies.”

BP Chairman Carl-Henric Svanberg said: “This is the beginning of a distinctive and exciting future consistent with our strategy to invest in Russia and leverage our unique expertise to create value for BP and our shareholders, for Rosneft and for Russia.”

Robert Dudley has been nominated as a candidate to join the Rosneft Board of Directors ahead of completion of the transaction, which underscores the trust of Rosneft’s shareholders. Electing Rosneft Board of Directors members is on the agenda of the Company’s 2012 annual general meeting to be held on June 20, 2013. Mr Dudley is also a member of Rosneft’s steering committee on TNK-BP integration.
Rosneft and BP will now work together to support the integration of Rosneft and TNK-BP, ensuring the implementation of world-leading business and technological approaches.

In addition BP and Rosneft intend to identify possible opportunities for joint work on standalone projects, both in Russia and internationally.