Newspaper article The Evening Standard (London, England)

BP Ushers in a New Era with U4bn Russian Deal

Newspaper article The Evening Standard (London, England)

BP Ushers in a New Era with U4bn Russian Deal

Article excerpt

Byline: STEVE HAWKES

BP chief executive Lord Browne fired back at his critics today by unveiling a bumper $6.75 billion (u4.22 billion) deal in Russia that is certain to herald a new era for the oil giant, writes Steve Hawkes.

BP, hit by mounting concerns over its growth prospects and safety record, is combining its interests in Russia with those of rivals Alfa and Access-Renova to form a business pumping out 1.2 million of barrels of oil a day.

Under the deal TNK, owned by Alfa and Access-Renova, will be lumped together with Sidanco, a company in which BP has built up a 25% stake during the past five years.

BP is paying its partners $6.75 billion over a four-year span to grab a 50% stake in the enlarged group, which will be Russia's third-largest oil and gas producer. Browne called the deal a "major strategic step into a country with massive oil and gas reserves and immense potential for future growth".

He added: "We believe this to be a great moment in the history of BP and of TNK-Sidanco and, indeed, an important milestone in the history of this industry. …

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