Rosneft ROSN Rosneft signs definitive agreements with BP

  Rosneft (ROSN) - Rosneft signs definitive agreements with BP

RNS Number : 8359R
OJSC OC Rosneft
22 November 2012




Rosneft signs definitive agreements to acquire a 50% stake in TNK-BP from BP

Rosneft today announces that it has entered into definitive agreements with BP
for the purchase of BP's 50% interest in TNK-BP in exchange for $17.1  billion 
in cash and 12.84% Rosneft shares currently held in treasury. The  completion 
is subject to regulatory approvals, and is expected to occur in the first half
of 2013.

In addition,  BP has  entered into  an agreement  to purchase  from  Rosneft's 
parent, Rosneftegaz,  a further  600 million  Rosneft shares,  representing  a 
5.66% stake in Rosneft. at a price of $8.00 per share.

On completion  of the  above transactions,  BP  will hold  a 19.75%  stake  in 
Rosneft, inclusive of its existing 1.25% interest.

Rosneft is  in advanced  negotiations  with the  AAR consortium  (Alfa  Group, 
Access Industries and  Renova) ("AAR")  of a definitive  agreement to  acquire 
AAR's 50% interest in TNK-BP  pursuant to the heads  of terms announced on  22 
October 2012. If and  when a definitive agreement  is signed, an  appropriate 
announcement will be  made. The transaction  with AAR is  independent of  the 
transaction with BP.

                                      

                                                              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 Russian oil company 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  December 2011,  TNK-BP had  proved reserves  of 10.1bn  barrels of  oil 
equivalent under SEC standard and 14.9bn barrels of oil equivalent under  PRMS 
standard. 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  $60.2bn and  net income  of 
$9.7bn.

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 17.8bn barrels of oil equivalent
under SEC  standard. 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 
throughput of 2,352  thousand barrels  per day  and 21,800  BP branded  retail 
sites. In 2011, BP generated revenues  of $375.5bn and net income of  $26.1bn. 
BP's market capitalisation is $136.9bn as of 19 October 2012.



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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AGRBTBFTMBBTBBT -0- Nov/22/2012 16:16 GMT