TNK-BP Sells Udmurtneft Stake to Sinopec

TNK-BP has reached agreement with Sinopec for the sale of its Udmurtneft assets and that the parties had exchanged written confirmation of commercial terms.

This completes a tender process which was launched at the end of 2005.

It is expected that settlement will occur in the near future following final agreement and signature of a fully termed Sale and Purchase Agreement. Russian anti—monopoly approval has already been obtained for the transaction.

The assets are being sold as a going concern.

Commenting on the agreement, Robert Dudley, TNK-BP President and CEO, said: "This is a positive development – it brings another major international investor working with strong Russian alliances into the country's oil and gas sector. It reinforces Russia's pivotal role in global energy markets. And I believe it will provide the stimulus for increased investment in the industry in Udmurtia. For TNK-BP it will allow us to concentrate more resources on our core exploration and production regions in Russia."