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.
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