BP confirms Rosneft talks

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.

Try 6 free issues of MoneyWeek today

Get unparalleled financial insight, analysis and expert opinion you can profit from.

Start your trial

Sign up for MoneyWeek’s free twice-daily newsletter.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Sign up

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.