Rosneft, AAR set to seal TNK-BP deal in December

Oil Pump in Siberia, Russia

Russian oil and gas major Rosneft OAO (MCX:ROSN) said on Friday it expects to reach a binding deal in December for the planned purchase of a 50% stake in Russia’s oil firm TNK-BP Holding OAO (MCX:TNBP) from the AAR consortium.

The announcement was made by Rosneft’s president Igor Sechin, who met with reporters after an extraordinary shareholder general meeting today.

Under the heads of terms agreement signed in October, Rosneft would pay $28bn (€21.5bn) in cash for AAR’s stake, subject to the negotiation of definitive agreements, corporate and regulatory approvals and other conditions.

Last week, Rosneft signed a definitive deal to buy the other half of TNK-BP from energy giant BP Plc (LON:BP). The agreed purchase price involves a cash consideration of $17.1bn and a payment in stock, representing 12.84% of Rosneft’s share capital.

Under the agreement, the UK company has offered to buy an additional 600m shares from Rosneft’s parent, Rosneftegaz OJSC, representing a 5.66% stake in Rosneft, for $4.8bn, or $8.00 apiece. As a result of the deal, BP will raise its current 1.25% stake in Rosneft to 19.75%.

The transaction for BP’s stake is subject to customary conditions, including regulatory approval, and is seen to be completed in the first half of 2013.

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