BP and the Alfa Group and Access-Renova (AAR) have completed the deal to combine their Russian and Ukrainian oil and gas businesses. The completion is the final step in the creation of TNK-BP, a new company owned and managed 50:50 by BP and AAR. In addition, BP has reached agreement with AAR to incorporate AAR’s 50% interest in Slavneft into TNK-BP.
BP said the main transaction did not for the moment include its share of the Sakhalin interest, which it originally intended to contribute to TNK-BP. The formation of a Sakhalin joint venture with licence partner Rosneft was still under negotiation and the Sakhalin interest could be contributed to TNK-BP at a later date. TNK-BP is Russia’s third largest oil and gas company, producing some 1.2 million barrels a day from its main oilfields in West Siberia and the Volga Urals. Completion of the Slavneft acquisition will increase TNK-BP’s production by some 160,000 barrels a day.
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