BP: from frying pan to the fire?

Beleaguered oil giant BP has tied up a deal with Russia's state-controlled Rosneft.

BP has sold its 50% stake in its Russian joint venture TNK-BP to Kremlin-controlled oil giant Rosneft for $26bn. BP has ended up with $12.3bn in cash and will have a near-20% stake in Rosneft, along with two members in a nine-strong board. Rosneft has also bought the other half of the venture from the oligarchs that controlled it. That means it is now set to become the world's largest oil and gas group by volume produced.

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