BP Oil Deal

BP Agrees on Terms of Rosneft Deal: Oil Company Sells TNK–BP Shares to Russian Giant

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TNK–BP's history was often troubled by friction and discrepancies between the joint–venture partners. Russia's oil administration is also notorious for granting exploration rights to public companies, industry experts say. Russia produces roughly 10280 thousand barrels of oil per day, making the country the number two global oil producer (following Saudi Arabia with average of 11161 thousand barrels per day).

Putin Intimates Dominating Russia's Oil Industry

Rosneft's rise to power began after the divestiture of the Jukos Group, a major private Russian oil producer lead by oligarch Michail Chodorkowski. Chodorkowski, who recieved a prison sentence for tax evasion, money laundering and fraud during the process, suspects intimates of Russia's president Wladimir Putin behind this scheme.

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The closing of the TNK–BP transaction could make the state owned company the biggest producer of crude oil in the world, giving the Kremlin a unique control over the country's oil industry. Now, as Russia aims to develop offshore oil production in the Arctic, Rosneft's chaiman Igor Setschin (former deputy head of the Presidential Administration of Russia) will likely control the Russian oil empire for President Putin.

Rosneft Becomes Global Number One Oil Company – Dethroning Exxon

In 2011 Rosneft, a fully integrated national oil and gas company, produced 2.45 million barrels a day of oil, up 52 per cent since 2006. As at the end of 2011, Rosneft’s proved developed reserves stood at 9.96 billion boe with proved undeveloped reserves of 8.39 billion boe. After the takeover of TNBK–BP Rosneft will become the world's biggest oil company, bigger than the current number one, Exxon Mobil of the US.