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Russian-UK venture TNK-BP confirmed Tuesday that it would sell its 120,000 barrel per day Udmurtneft subsidiary to China's Sinopec, in a breakthrough for the Chinese company.
In a side deal, Russia's state Rosneft will acquire 51% in Udmurtneft from Sinopec.
A Chinese major has finally clinched a major upstream purchase in Russia after earlier frustrations, while Rosneft should secure access to Chinese assets, including processing facilities. BP, for its part, may win a more favorable reception in China, where it nurtures ambitious plans.
TNK-BP said in a statement that an agreement had been reached with Sinopec for the sale of Udmurtneft and that the parties had exchanged written confirmation of commercial terms. "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 antimonopoly approval has already been obtained for the transaction," the statement said.
Rosneft's confirmation came several hours later, with the state oil giant saying it would exercise its option for...