A consortium of Russian billionaires has reportedly agreed to sell its stake in a joint venture with UK oil giant BP.
Alfa Access-Renova (AAR), which owns half of TNK-BP, has struck a deal with Russia’s state-controlled oil producer Rosneft for more than £17billion, according to reports last night.
The tentative agreement would dissolve a lucrative but troubled partnership with BP, which bought into TNK-BP in 2003, and clears the way for the UK firm to forge an alliance with Rosneft.
It is understood Rosneft could yet table an offer to buy out BP as well, however.
All three organisations declined to comment on the reports.
Relations between BP and its partner soured last year when AAR billionaires Mikhail Fridman, German Khan, Viktor Vekselberg and Len Blavatnik blocked an exploration deal between BP and Rosneft, saying it violated an exclusivity clause in a TNK-BP shareholder pact.
AAR then turned down a £19.8billion offer from BP and Rosneft to buy it out from the joint venture and end the impasse.
Relations deteriorated further, with Mr Fridman quitting as TNK-BP’s chief executive in May of this year and BP putting its stake in the business up for sale the following month.
Rosneft had also expressed an interest in buying BP’s stake.
With at least £9.2billion in financing on hand, according to bankers, Rosneft would be well placed to close a purchase of the AAR stake.
Under the terms of the TNK-BP shareholder agreement, AAR should give BP first option on its stake and only after several months would it be permitted to sell to a third party.
Analysts speculate that BP would likely waive this stipulation.
TNK-BP is the third-biggest oil producer in Russia, behind Rosneft and Lukoil.
The business accounted for more than a quarter of BP’s production and 90% of its 2011 dividend.