Rosneft Approves Loan of up to around $10 Billion from TNK-BP

MOSCOW--Russian state-owned oil giant Rosneft (ROSN.RS) said Tuesday its board of directors has approved a potential loan worth up to around $10 billion from TNK-BP, a joint-venture recently acquired by the Russian oil major, for a period of five years.

The decision was made Thursday, according to the statement from the company.

Rosneft has not taken up the loan, but merely received approval from its board of directors to borrow the amount, should it need to do so, a company spokeswoman said.

This so-called cash-pulling practice is "standard," and does not oblige the company to take up the loan, she said.

Rosneft Thursday closed deals worth around $55 billion to take over TNK-BP and become the world's largest listed oil producer, with BP PLC (BP) as a major shareholder. BP Chief Executive Officer Bob Dudley and Rosneft CEO Igor Sechin met with Russian President Vladimir Putin at his residence outside Moscow to announce the closing of the deals.

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

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