THE RUSSIAN state oil company Rosneft has announced its interest in acquiring oil major BP’s 50 per cent stake in TNK-BP, its Russian joint venture, in a move that could shake up Russia’s oil industry and increase Rosneft’s already hegemonic role.

Rosneft president Igor Sechin made the announcement yesterday. “Rosneft . . . considers the potential acquisition of BP’s participation in TNK-BP to be an attractive commercial proposition,” he said in a prepared statement. “The potential acquisition would complement its existing portfolio and create value for all stakeholders.”

Rosneft has long been understood to be interested in BP’s stake, which analysts have valued at $25 billion-$30 billion. The Russian group was flagged as a likely buyer in May after BP announced it had received approaches for its share and was pursuing a sale.

Rosneft however will be in competition with BP’s Russian partners in TNK-BP, the AAR consortium, which has also expressed interest in BP’s stake, and, given an aggressive record, is unlikely to surrender without a legal battle.

Valery Nesterov, an oil and gas analyst at investment house Troika Dialog in Moscow, said Rosneft’s announcement upped the stakes for AAR investors, forcing them to potentially shell out more money for BP’s stake or risk having to face Rosneft as a co-investor, an undesirable scenario given the fraught history between the two groups.

AAR butted heads with Mr Sechin last year after it successfully blocked a landmark exploration deal that BP had struck with Rosneft. Mr Sechin was clearly frustrated with AAR’s interference. “For the AAR shareholders it’s probably the worst possible outcome” to be 50-50 partners with Rosneft, Mr Nesterov said.

BP’s move to sell comes at the end of a long series of disputes between itself and AAR over control of the 50-50 joint venture, which accounts for 29 per cent of the UK group’s oil production.

Mikhail Fridman stepped down as chief executive of TNK-BP in May, saying the partnership with Rosneft had run its course.

If Rosneft’s proposed purchase of BP’s stake were to be done as a share swap, this could potentially leave BP in possession of a large stake in Rosneft. – Copyright The Financial Times Limited 2012