BP In Talks To Buy TNK-BP

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BP, Europe's second-largest oil company, is reportedly again in talks to acquire TNK-BP, its joint venture with Russian oligarch investors, as the deadline looms for the British company to either move forward with or extend the deadline for its proposed $16 billion share exchange with OAO Rosneft, Russia's largest oil company.

The deal could be worth $30 billion or more, and, through a series of transactions with BP, it would give Rosneft the 50% stake in TNK-BP now owned by the billionaire partners, according to the Wall Stret Journal. TNK-BP investors would get stakes in BP (BP) and Rosneft as part of the proposal.

The news of BP acquiring TNK-BP, Russia's third-largest oil company, first surfaced last month when BP was facing the first deadline to get the deal with Rosneft. A deal for TNK-BP could be announced as soon as Monday, the Journal reported. BP has said it is willing to give up its interest in an Arctic drilling alliance with Roseneft to TNK-BP so the share swap can move forward, but Rosneft has not been in favor of allowing TNK-BP to participate in the venture.

TNK-BP accounts for a quarter of BP's output, 20% of its reserves and 10% of its earnings.

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