BP Could Return Some Proceeds from TNK-BP Stake Sale to Shareholders

LONDON - BP PLC could return some of the proceeds from the sale of its stake in TNK-BP Holding to shareholders if such a divestment takes places, a company spokesman said Sunday.

The comment comes after the U.K. oil giant signaled Friday it was considering selling the 50% stake it owns in Russia's third-largest oil producer.

"Were we to sell, the board will have certain options to do with the money," the BP spokesman said. "There are a number of options, including redistributing to shareholders, reducing debt and reinvesting for the future."

"It could be any one of them, or three or two of them," he said, adding the sale "may not happen."

BP's stake in TNK-BP is worth between $25 billion and $35 billion, according to analysts.

London's Telegraph newspaper reported Sunday that BP had told leading shareholders that they could be in line for a $15 billion windfall if the sale were to take place.

BP said Friday it was considering exiting the venture after receiving unsolicited offers for its 50% stake.

The possible divestment comes after renewed tensions between BP and its Russian partners in the venture after TNK-BP's chief executive, Mikhail Fridman, resigned last week.

Copyright (c) 2012 Dow Jones & Company, Inc.


Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies

Our Privacy Pledge

Most Popular Articles

From the Career Center
Jobs that may interest you
Account Manager
Expertise: Business Development
Location: Houston, TX
Patent Counsel/Senior Patent Counsel
Expertise: Legal
Location: Richmond, VA
Project Manager
Expertise: Project Management
Location: Anchorage, AK
search for more jobs

Brent Crude Oil : $55.48/BBL 0.25%
Light Crude Oil : $49.91/BBL 0.04%
Natural Gas : $3.15/MMBtu 4.30%
Updated in last 24 hours