MOSCOW (MRC) -- Rosneft and BP signed several agreements strengthening the long term strategic relationship between the two companies, at the St. Petersburg International Economic Forum, said BP in its press release.
Rosneft and BP signed final binding agreements for Rosneft’s sale to BP of a 20 per cent share of Taas-Yuryakh Neftegazodobycha (Taas), creating a new joint venture in East Siberia. The document was signed by Rosneft Management Board Chairman Igor Sechin and President of BP Russia David Campbell.
The venture will further develop the Srednebotuobinskoye oil and gas condensate field which is one of the largest fields in eastern Siberia, currently producing about 20,000 barrels a day. The Taas venture will also undertake the development of suitable infrastructure for further exploration and development of the region’s reserves. Related to this, Rosneft and BP will also jointly undertake the exploration of an associated Area of Mutual Interest (AMI) in the region, covering approximately 115,000 square kilometres.
Within the framework of the Forum, Igor Sechin and David Campbell also signed a heads of terms to pursue a reorganization of the German Ruhr Oel GmbH (ROG) refining joint venture. The document envisages restructuring the JV by dividing between the parties shares in four refineries and associated infrastructure.
As a result of the planned deal Rosneft will double its shareholding in the Bayernoil refinery – to 25% from 12.5%; the MiRO refinery – to 24% from 12%; and the PCK Raffinerie – to 37.5% from 18.75%.
BP in exchange will consolidate 100% of the equity of the Gelsenkirchen refinery and the solvent production facility DHC Solvent Chemie. The closing of the deal is subject to the fulfillment of conditions precedent, which include inter alia regulatory approvals.
The restructuring of Ruhr Oel GmbH will enable Rosneft and BP to re-focus their refining and petrochemicals strategies in Germany.
In May 2011, Rosneft acquired a 50% share in a joint venture Ruhr Oel GmbH (ROG) in Germany. ROG holds stakes in four refineries in Germany.
Rosneft became Russia's largest publicly traded oil company in March 2013 after the USD55 billion takeover of TNK-BP, which was Russia’s third-largest oil producer at the time.
BP is one of the world's leading international oil and gas companies, providing its customers with fuel for transportation, energy for heat and light, retail services and petrochemicals products for everyday items.
MRC