25 years of collaboration with leading Russian oil and gas companies
BP first opened its representative office in Moscow in 1990. In 1997, it purchased a 10 per cent stake in Sidanco, then Russia’s 4th largest oil company. The stake was subsequently increased to 25 per cent plus one share in 2002.
In 2003, BP merged its interests in Russia with those of TNK to create TNK-BP, a successful joint venture employing around 50,000 people and operating in nearly all of Russia’s major hydrocarbon regions.
TNK-BP went on to become Russia’s third biggest vertically integrated oil and gas company, generating more than $55 billion of net profit in 2003 - 2012. TNK-BP’s production rose by over 40% in nine years and proved SEC reserves grew by more than 30% from end 2003 to end 2012.
These results were achieved through the introduction of advanced technologies and processes by BP technical specialists. Over the history of TNK-BP, the joint venture generated around $19 billion of net dividends for BP's shareholders, while paying more than $190 billion in taxes and duties to the Russian Federation.
These achievements are a testament to the powerful partnership of BP and experienced Russian oil and gas professionals working together.
On 1 June 2012, BP announced its intention to pursue a sale of its shareholding in TNK-BP.
Almost five months later, on 22 October 2012, BP signed Heads of Terms to sell its 50 per cent share in TNK-BP to Rosneft.
The deal was completed on 21 March 2013 and resulted in BP holding 19.75 per cent of Rosneft stock. Through its significant shareholding in Rosneft BP will maintain prominent exposure to the world’s largest (based on production volume) listed oil company and the biggest oil producing nation. Strategically, BP and Rosneft gain from the opportunity for deeper strategic and technological cooperation as well as potential joint venture collaborations with Rosneft.
BP support of Russian cultural institutions and projects
BP’s commitment to Russia goes beyond the development of oil and gas reserves. In line with its global practice BP views corporate social responsibility an integral part of its business in Russia. BP’s overall support of the local social, cultural, educational and charity projects has been the largest among foreign companies operating in Russia