Rosneft ROSN Rosneft Board Approves BP Deal

  Rosneft (ROSN) - Rosneft Board Approves BP Deal

RNS Number : 8290R
OJSC OC Rosneft
22 November 2012




                       Rosneft Board Approves BP Deals

A November  20 meeting  of  the Rosneft  Board  of Directors  reviewed  issues 
relating to the deals with BP. The Board of Directors:

1. Approved Rosneft's participation in  TNK-BP Limited and TNK  Industrial 
Holdings Limited;

2. Approved Rosneft's large deal to acquire a 50% stake in TNK-BP  Limited 
and TNK Industrial Holdings  Limited from BP for  a cash consideration of  USD 
25.4 billion (subject to variation under  conditions set down in the sale  and 
purchase agreement) and 3.04% of Rosneft shares (at USD 8.00 per share);

3. Approved the sale of 9.8% of Rosneft shares belonging to RN-Development
to BP at a price of USD 8.00  per share for a total cash consideration of  USD 
8.3 billion (subject to  variation under conditions set  down in the sale  and 
purchase agreement).

These decisions were taken in accordance with Russian government directives.

Rosneft will acquire a 50% stake in TNK-BP from BP for a cash consideration of
USD 17.1 billion and 12.84% of Rosneft shares through these approved deals.

Rosneft and BP have  completed the approval process  for legally binding  deal 
documents, which are to be signed shortly.

The totals and percentages shown above have been rounded off.

                                      

                                                              22 November2012

                                                  Rosneft Information Division
                                                      Tel.: +7 (495) 411 54 20
                                                       Fax: +7 (495) 411 54 21
                                                               www.rosneft.com

                                                         Pelham Bell Pottinger
                                              James Henderson / Nick Lambert /
                                          Rollo Crichton-Stuart / Elena Dobson
                                                              +44 20 7861 3232



Notes to editors:

TNK-BP:

TNK-BP is a vertically integrated  group of companies operating a  diversified 
upstream and downstream  portfolio, with assets  in Russia, Ukraine,  Belarus, 
Venezuela, Vietnam  and Brazil.  TNK-BP  owns 95%  in publicly  listed  TNK-BP 
Holding and c.50% in  Slavneft, a vertically  integrated Russian oil  company, 
among other assets.  TNK-BP is  Russia's third largest  oil producer,  employs 
c.50 thousand  people  and operates  in  Russia's major  hydrocarbon  regions, 
including West Siberia, Volga-Urals and East Siberia.

As of the end of  2011, TNK-BP had proved reserves  of 10.1 bn barrels of  oil 
equivalent under  SEC classification  and 14.9  bn barrels  of oil  equivalent 
under PRMS classification. TNK-BP  has achieved production  growth in each  of 
the last three years, reaching an  average daily production of 1,987  thousand 
barrels of  oil  equivalent  in  2011. The  company  has  interests  in  seven 
refineries in CIS, including indirect holdings through Slavneft, with a  total 
throughput in 2011 of 747 thousand barrels per day. TNK-BP operates a  network 
of 1,388 retails stations. In 2011, TNK-BP generated revenues of $60.2 bn  and 
net income of $9.7 bn.

BP:

BP is a leading international oil and gas company engaged in the  exploration, 
production, refining  and distribution  of natural  gas, petroleum  and  other 
related products. The company employs c.83 thousand people and has exploration
and production activities in  30 countries with major  interests in the  U.S., 
Russia, Azerbaijan,  Angola, the  United Kingdom,  North Africa,  Canada,  the 
Middle East and Asia.

At the  end  of 2011,  BP  had  proved reserves  of  17.8 bn  barrels  of  oil 
equivalent  under  SEC  classification.  BP's  average  daily  production   of 
hydrocarbons in  2011  reached  3,454  thousand  barrels  of  oil  equivalent, 
including its share of TNK-BP. As of the  end of 2011, BP had interests in  16 
refineries with  a total  throughput of  2,352 thousand  barrels per  day  and 
21,800 BP branded retail sites. BP's market capitalisation is $136.9 bn as  of 
19 October 2012. In 2011, BP generated revenues of $375.5 bn and net income of
$26.1 bn.



These materials contain statements about  future events and expectations  that 
are forward-looking in nature. Any statement in these materials that is not  a 
statement of  historical fact  is a  forward-looking statement  that  involves 
known and  unknown risks,  uncertainties  and other  factors which  may  cause 
actual results,  performance  or achievements  expressed  or implied  by  such 
forward-looking statements to differ. We  assume no obligations to update  the 
forward-looking statements contained herein to reflect actual results, changes
in assumptions or changes in factors affecting these statements.



                     This information is provided by RNS
           The company news service from the London Stock Exchange

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