Under the terms of the agreements, Rosneft will provide an estimated amount of $17.1bn in cash and 12.84% share in the company to BP.

The transaction is subject to certain customary closing conditions, including governmental, regulatory and anti-trust approvals and is expected to complete in the first half of 2013.

BP also entered into an agreement with Rosneftegaz, Rosneft’s parent company, to purchase a further 600 million Rosneft shares, representing a 5.66% stake in Rosneft at a price of $8.00 per share.

The agreement now has received approval from the Russian Government, Rosneft said.

After the completion of the above transactions, with the combination of current 1.25% shareholding, BP will hold a 19.75% stake in Rosneft.

Rosneft is also trying to negotiate with the AAR consortium, the other shareholder in TNK-BP including, Alfa Group, Access Industries and Renova.

Discussions are in progress to sign another definitive agreement to acquire AAR’s 50% stake in the TNK-BP.

The transaction with AAR, however, is independent of the transaction with BP, the company said.

 

 

Â