Rosneft signs definitive agreements to acquire a 50% stake in TNK-BP from BP
Rosneft today announces that it has entered into definitive agreements with BP for the purchase of BP’s 50% interest in TNK-BP in exchange for $17.1 billion in cash and 12.84% Rosneft shares currently held in treasury. The completion is subject to regulatory approvals, and is expected to occur in the first half of 2013.
In addition, BP has entered into an agreement to purchase from Rosneft’s parent, Rosneftegaz, a further 600 million Rosneft shares, representing a 5.66% stake in Rosneft. at a price of $8.00 per share.
On completion of the above transactions, BP will hold a 19.75% stake in Rosneft, inclusive of its existing 1.25% interest.
Rosneft is in advanced negotiations with the AAR consortium (Alfa Group, Access Industries and Renova) (”AAR”) of a definitive agreement to acquire AAR’s 50% interest in TNK-BP pursuant to the heads of terms announced on 22 October 2012. If and when a definitive agreement is signed, an appropriate announcement will be made. The transaction with AAR is independent of the transaction with BP.
22 November 2012
Rosneft Information Division
Tel.: +7 (495) 411 54 20
Fax: +7 (495) 411 54 21
www.rosneft.com
Pelham Bell Pottinger
James Henderson / Nick Lambert /
Rollo Crichton-Stuart / Elena Dobson
+44 20 7861 3232
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Notes for Editors: TNK-BP: TNK-BP is a vertically integrated Russian oil company operating a diversified upstream and downstream portfolio, with assets in Russia, Ukraine, Belarus, Venezuela, Vietnam and Brazil. TNK-BP owns 95% in publicly listed TNK-BP Holding and c.50% in Slavneft, a vertically integrated Russian oil company, among other assets. TNK-BP is Russia’s third largest oil producer, employs c.50 thousand people and operates in Russia’s major hydrocarbon regions, including West Siberia, Volga-Urals and East Siberia. As of December 2011, TNK-BP had proved reserves of 10.1bn barrels of oil equivalent under SEC standard and 14.9bn barrels of oil equivalent under PRMS standard. TNK-BP has achieved production growth in each of the last three years, reaching an average daily production of 1,987 thousand barrels of oil equivalent in 2011. The company has interests in seven refineries in CIS, including indirect holdings through Slavneft, with a total throughput in 2011 of 747 thousand barrels per day. TNK-BP operates a network of 1,388 retails stations. In 2011, TNK-BP generated revenues of $60.2bn and net income of $9.7bn. BP: BP is a leading international oil and gas company engaged in the exploration, production, refining and distribution of natural gas, petroleum and other related products. The company employs c.83 thousand people and has exploration and production activities in 30 countries with major interests in the U.S., Russia, Azerbaijan, Angola, the United Kingdom, North Africa, Canada, the Middle East and Asia. At the end of 2011, BP had proved reserves of 17.8bn barrels of oil equivalent under SEC standard. BP’s average daily production of hydrocarbons in 2011 reached 3,454 thousand barrels of oil equivalent, including its share of TNK-BP. As of the end of 2011, BP had interests in 16 refineries with a throughput of 2,352 thousand barrels per day and 21,800 BP branded retail sites. In 2011, BP generated revenues of $375.5bn and net income of $26.1bn. BP’s market capitalisation is $136.9bn as of 19 October 2012. |
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