BP pleased to become shareholder in Rosneft - Dudley
MOSCOW. March 7 (Interfax) - BP might discuss joint projects with Rosneft , but it is more pleased by its role as a shareholder in Rosneft, BP President Robert Dudley said in an interview with television channel Rossiya-24.
BP attempted to strike an agreement with the Russian state-owned company on joint work on the Arctic shelf in 2011 through TNK-BP . However, that is already history, Dudley said. Now BP is a shareholder in Rosneft, and Dudley is glad to see how Rosneft is entering into detailed contracts with international companies - for example, ExxonMobil and Statoil. Of course, BP and Rosneft can discuss joint projects, but BP is more pleased by its role as a Rosneft shareholder, and it supports the Russian company's international presence, Dudley said.
Now BP has the opportunity to enter into transactions in Russia directly, instead of through TNK-BP, as was previously enshrined in TNK-BP's shareholder agreement. BP discussed this matter with Rosneft President Igor Sechin. There are ideas on the topic from both sides - it could be work in the Arctic, work on the shelf and international cooperation, Dudley said.
Addressing the sale of BP's stake in TNK-BP, Dudley noted that TNK-BP is an excellent company, but after its purchase, Rosneft will become the world's largest producer. BP had 50% of TNK-BP, and now it will have 20% of Rosneft. According to Dudley, this is a roughly comparable contribution. Rosneft's dividend policy cannot go without mention - the company intends to earmark 25% of net profit for dividends, which is a very clear line supported by Russian President Vladimir Putin, Dudley said.
By selling its stake in TNK-BP, BP will positively impact its own capitalization. TNK-BP was quite successful for its shareholders. If one looks at a map of Russia, he sees that TNK-BP's areas of operation were often near Rosneft. Now these companies are merging and will interact with one another, which will be positive for both BP and Rosneft stock, Dudley said.
Asked how he views his mission as a member of Rosneft's board of directors, Dudley said that he is happy to take a seat on the board. BP will have 20% of Rosneft, and it has worked for a long time in Russia through TNK-BP. This served as an excellent example of cooperation between Russian oil and gas sector professionals and BP experts. BP is honored to integrate experience from oil and gas sector professionals from various countries on a global level.
At present, Rosneft is in the process of buying 100% of TNK-BP from its two shareholders - BP and the Alfa-Access-Renova (AAR) consortium. In the framework of the deal, Rosneft will shell out approximately $12 billion in cash to BP, and BP will get 19.7% of Rosneft's shares. Rosneft will also pay $28 billion in cash to AAR. Sources have said that Rosneft might wrap up its purchase at the end of March or early April.