BP to get $700mln less for selling stake in TNK-BP to Rosneft

PanARMENIAN.Net - British oil major BP will get $700 million less for selling its 50 percent stake in TNK-BP to state-owned Rosneft, in consideration of dividends paid to BP in December last year, BP’s fourth quarter and full year 2012 statement said on Tuesday, Feb 5, according to RIA Novosti.

BP signed a deal with Rosneft in November 2012 to sell its 50 percent stake in the TNK-BP joint venture for $17.1 bln in cash and 12.84 percent of Rosneft’s stock.

The parties agreed BP would use $4.8 billion of that cash to acquire a further 5.66 percent stake in Rosneft from the Russian government at a price of $8 per share.

After the transaction was completed, BP was expected to acquire a total 18.5 percent stake in Rosneft and net $12.3 billion in cash, with BP's holding rising to 19.75 percent of Rosneft stock, when aggregated with BP’s 1.25 percent current stake already held in the Russian oil giant.

BP’s report says, however, the British oil major was paid a $700 million dividend by TNK-BP, which reduced the cash consideration for the TNK-BP deal to $11.6 billion.

The deal to sell BP's TNK-BP state to Rosneft is expected to be closed in the first half of 2013.