Sunday, December 23, 2012

BP and Rosneft plan TNK integration

Bob Dudley, BP’s chief executive, is to join a steering committee to mastermind the integration of TNK-BP (LSE: BP.L - news) into Rosneft, the companies announced on Thursday.


The news followed talks between Mr Dudley and Rosneft president Igor Sechin in Moscow on Wednesday, who met for only the second time since late October, when the pair agreed a $27bn (£17bn) deal that would see BP sell its half of the venture.

BP has taken a near-20pc stake in Rosneft as part of the deal and has told its shareholders it believes it can help to drive synergies and boost returns.

Rosneft has also agreed to buy the other half of TNK-BP from BP’s oligarch partners, the Alfa-Access-Renova consortium, with both deals expected to complete in the first half of next year.

Mr Sechin will chair the steering committee co-ordinating the integration of TNK-BP’s assets.

In a statement, BP and Rosneft said they had “confirmed their commitment to efficient integration of the companies and agreed that the process is a unique opportunity to bring many of the world’s best business and technical practices into the combined company in a short time frame”.

Mr Sechin said: “I am glad to see the progress in our co-operation and am confident that the experience of Bob Dudley and of the BP team will raise the efficiency of the integration process and will ensure the combined company becomes one of the most competitive international majors.”

Mr Dudley said: “BP is committed to Rosneft’s success throughout the integration process and beyond and we see significant potential for profitable partnership between our companies.”

BP is to take two seats on the Rosneft board of directors. BP investors are also expecting a share buyback next year using some of the $12.3bn cash proceeds of the sale.

yahoo.com

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