Courtesy of Benzinga
BP (NYSE: BP), Europe’s second-largest oil company, is reportedly once again in talks with TNK-BP, its joint venture with Russian oligarch investors, about acquiring the company that is Russia’s third-largest oil producer in an effort to move forward with the controversial $16 billion share exchange with OAO Rosneft.
The deal could be worth $30 billion or more, and, through a series of transactions with BP, it would give Rosneft the 50% stake in TNK-BP now owned by the billionaire partners, according to the Wall Stret Journal.. TNK-BP investors would get chunks of both BP and Rosneft, Russia’s largest oil producer.
If BP is successful in its effort to acquire TNK-BP, it would pave the way for the British oil giant to move forward with Rosneft in a potentially lucrative Arctic exploration alliance.
The deadline to move forward with the share swap is Monday at midnight and BP had previously shown a willingness to cede its stake in the Arctic venture to TNK-BP, but Rosneft has been vocal in its opposition to TNK-BP becoming part of the Arctic plans.
A deal for TNK-BP could be announced as soon as Monday, the Journal reported. While BP and Rosneft were rebuffed last month in their effort to acquire a stake in TNK-BP, those talks were never officially scrapped.
TNK-BP has stood in the way of the BP/Rosneft pact, claiming it violates the venture’s shareholder agreement with BP and that it has exclusive rights to BP’s business dealings in Russia. TNK-BP accounts for a quarter of BP’s output, 20% of its reserves and 10% of its earnings.
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