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BP is to begin negotiations with Russia’s Rosneft over the potential purchase of the former’s shareholding in the TNK-BP joint venture.
The UK major also confirmed in a formal statement that “while conducting parallel discussions with Rosneft and any other interested parties, it will negotiate in good faith with Alfa Access-Renova in accordance with its legal obligations.”
BP welcomed an announcement by Rosneft of its interest in starting negotiations, with both companies having signed a non-disclosure agreement.
On July 19, BP began a 90-day period of good faith negotiations with Alfa Access-Renova regarding the potential sale of BP’s shareholding in TNK-BP as required by the TNK-BP shareholder agreement. This followed notification by Alfa Access-Renova of its intention to exercise its right to enter a period of negotiation to purchase part or all of BP’s 50% share in TNK-BP.
BP added, however, that there was “no guarantee that any transaction will take place” and that “further announcements will be made when and if appropriate.”
TNK-BP is currently owned equally by BP and Alfa Access-Renova, after being formed in 2003 as the result of the merger of BP’s Russian oil and gas assets and the oil and gas assets of Alfa Access-Renova. It currently has upstream and downstream assets in Russia, Ukraine, Brazil, Venezuela, and Vietnam.