BP, Rosneft set for $25 billion TNK-BP deal

  • Rosneft and BP are set to announce a deal worth more than $25 billion, according to sources familiar with the matter.

    The move could give the British oil giant a stake of between 16 and 20 percent in the state-controlled Russian energy firm.

    The agreement, which is yet to be finalised, could be made public on Monday or Tuesday.

    It folds BP's half of TNK-BP into Rosneft, in exchange for cash and Rosneft stock.

    The deal could also enable BP to end a tumultuous relationship with its partners in the venture, AAR, and seek closer ties to the Russian government, which exerts tight control over the oil industry.

    Rosneft is the top producing company in Russia.