BP buys 20% stake in Russian energy giant Rosneft

BP is to take a near-20% stake in what will become the world’s largest publicly listed oil producer as part of a £16.7bn (€20.5bn) deal.

State-backed Russian energy firm Rosneft has agreed to buy BP’s 50% stake in its troubled TNK-BP joint venture for $17.1bn (€13.1bn) in cash and 9.7bn (€7.44bn) worth of Rosneft shares.

The deal, which is subject to state and regulatory approvals, will see BP grab a 19.75% stake in Rosneft, which will become the world’s biggest publicly traded oil company with daily crude output of more than three million barrels.

BP chairman Carl-Henric Svanberg hailed the move as “an important day for BP”.