BP in Talks with Rosneft for TNK-BP

BP has confirmed that it is entering into negotiations with Rosneft for its stake in TNK-BP following an announcement from Rosneft earlier in the day that it was pursuing the shares.

BP said today that it would enter into talks with Rosneft for the potential sale of its 50 per cent stake in TNK-BP, which it announced last month that it would be selling. According to Rosneft, the two companies have signed a non-disclosure agreement in preparation of the negotiations.

Though Rosneft has been informed that BP's partner in TNK-BP Alfa Access Renova (AAR) is interested in acquiring the same stake, it says that it believes it acquiring the 50 per cent stake would be in the best interest of TNK-BP.

"Rosneft believes that an acquisition of BP’s interest in TNK-BP would be in the best interest of both Rosneft’s and BP’s shareholders and would lead to further development of TNK-BP," it said in a statement today.

AAR has already indicated its interest in the BP stake and said last week that it had entered into a 90-day good faith agreement to discuss the purchase of BP's shares.

"AAR and BP both realize that a fundamental realignment in the ownership of TNK-BP is necessary in order to allow each of the shareholders to achieve its strategic objectives and eliminate the internal contradictions that are preventing further development of TNK-BP," CEO of AAR Stan Polovets said last week. "We hope that BP will now engage with us constructively, particularly given the importance of TNK-BP to BP's overall position."

The company has indicated that it is interested in purchasing one half of BP's 50 per cent stake (25 per cent). Though BP is free to discuss the sale of its shares with other interested parties during this 90-day period, it may not finalise any deals, including any with Rosneft, before that period is up.