Under the terms of the deal, BP would remain in Russia but — initially at least — only as a minority investor in an oil company controlled by the government of President Vladimir V. Putin. Later, BP is hoping to use this new strategic tie with the Kremlin to drum up other business.

BP had been telegraphing its willingness to make a deal for some time, and Rosneft formally submitted an offer on Thursday to buy out BP’s 50 percent of a joint venture here called TNK-BP.

The board’s authorization allowed BP’s chief executive, Robert W. Dudley, to negotiate the final terms for BP’s sale of its Russian holdings within a range of acceptable combinations of cash and shares, the executive with knowledge of the decision said.

The ranges were $10 billion to $14 billion and 15 to 20 percent of Rosneft’s shares. BP is likely to receive at least one seat on the board.

A formal announcement is expected as early as Monday. BP’s stock rose about 4 percent last week when it became clear that a deal was imminent.

For BP, the sale comes as the biggest step yet in Mr. Dudley’s “shrink to grow” strategy in the wake of the 2010 Gulf of Mexico oil spill.

See more:


Advertisements – slutet av DAG RAPPORT: Rubrik aktierna blygsamt lägre i slutet som middagstid rally i gruvdrift lager rann ut i sanden och en negativ start på Wall Street erbjuds ingen inspiration. BP lidit på nyheten om sin affär med Rosneft.
Vid utgången av lek, var FTSE100 ner 13,24 poäng på 5,882.91 med FTSE250 off 34,3 poäng på 12.040 och FTSE Smallcaps 5,88 procentenheter högre på 3,282.52.
US stocks lost ground in late morning trade after uninspiring corporate reports.
Approaching the close in London, the Dow Jones Industrial Average was down 47 points at 13,296, the S&P500 fell 5 points at 1,428 and the Nasdaq Composite lost 2 points at 3,004.
Amongst a mixed performance for miners, Anglo American climbed 12p at 1,908.5p, while Vedanta Resources rallied 7p at 1,142p and Antofagasta added 6p at 1,309p.
Gold Miner Randgold Resources toppade topplistan, upp 200P på 7.615 p och Fresnillo ökade 24p vid 1.916 p, trots priset på blanka metallen kvar runt $ 1.725 per uns.
Bland sektorn förlorarna föll Rio Tinto 6.5p kl 3194 p, lättade BHP Billiton 4.5p kl 2,029.5 p och Kazakhmys tappade 6.5p kl 765.5p.

 UK lager minskade för andra dagen som Japans export rasade och amerikanska företag omsatte som bogserade prognoser.
Aggreko (AGK) Plc gled 3 procent efter HSBC Holdings Plc sänkt sin rating på aktien. Fresnillo Plc (FRES) och Randgold Resources Ltd (RRS) ledde BASIC-resurser aktier högre. Afrikansk Barrick Gold Plc fick 1 procent efter att ha fått godkännande i Kenya för att köpa prospekteringstillgångar i landet.
FTSE 100 (UKX) sjönk 0,2 procent till 5,882.91 i slutet i London. Det egna kapitalet riktmärke har fortfarande samlat 12 procent från årets låga 1 juni som Europeiska centralbankens ordförande Mario Draghi lovat att göra allt för att skydda euron. Det bredare FTSE All-Share Index drog också 0,2 procent i dag, medan Irlands ISEQ index tappade mindre än 0,1 procent.

Welcome to! This is your very first post. Click the Edit link to modify or delete it, or start a new post. If you like, use this post to tell readers why you started this blog and what you plan to do with it.

Happy blogging!