BP has agreed the terms for the sale of its 50-per-cent stake in joint venture TNK-BP to Russian state-backed oil firm Rosneft, a statement released in London said Monday, dpa reported.
The deal, which is set to transform Rosneft into the world's largest publicly-listed oil producer, also gives BP access to Russia's huge oil resources.
Under the cash-and-share deal, Rosneft will pay BP 17.1 billion dollars in cash, and give the British oil giant shares representing 12.84 per cent of Rosneft.
BP intends to use 4.8 billion dollars of the cash consideration to purchase a further 5.66 per cent of Rosneft from the Russian government, the statement said.
On completion of the proposed transaction, BP expects to hold 19.75 per cent of Rosneft shares, including BP's existing holding of 1.25 per cent, and to have received 12.3 billion dollars in cash.
The deal, details of which were hammered out over the weekend, was reportedly sanctioned by Russian President Vladimir Putin on Monday.
The purchase of BP's TNK-BP stake is set to make Rosneft the world's biggest publicly traded oil company. The remaining 50 per cent is held by a consortium of Russian billionaires who are reported to have agreed to sell their share.
British media reports earlier said Monday that key investors remained uneasy about the role of the Russian government following a deal.