BP has confirmed it is in advanced talks with Russian state oil firm Rosneft over the sale of its 50 per cent stake in TNK-BP.
The British firm said no agreement had yet been reached and further announcement would be made "if and when" a deal is struck.
BP's relationship with TNK and its oligarch co-owners has been fraught, but has also delivered billions of dollars in dividends to the UK company.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Reports say the $27bn (£17bn) deal would see BP sell its troublesome Russian operation while forging a new alliance with the Kremlin.
According to unnamed sources reported in the media, BP will receive cash and shares in Rosneft, which is run by Igor Sechin, a close friend of Russian President Vladimir Putin.
This could leave it with with a stake in the Russian firm worth 16% - 20%, as well as two seats on the board.
The Sunday Times said the deal had been approved on Friday afternoon at BP's St James's Square headquarters in central London.
-
Is a mortgage in retirement always a bad idea?A mystery shopper exercise shows high street lenders are “shunning” retirees looking to take out a mortgage. Are they right to do so?
-
Three funds to consider as UK small caps trade at 30% discountUK small caps have been unloved for some time, but a shifting economic environment could give them a boost
