Member Article

BP strikes Rosneft deal and raises dividend

Fuel giant BP announced a 12.5% rise in its quarterly dividend for the last nine months of the year alongside confirmation of an agreement to sell its stake in a joint venture with Russia, TNK-BP.

The firm will sell its shareholding in Russia’s third largest crude producer to British business, Rosneft, for a combination of shares and cash.

Chief Executive, Bob Dudley commented: “I believe our agreement will remove considerable uncertainty for our shareholders about BP’s future in Russia and will secure for BP a valuable and truly distinctive position in one of the world’s largest and most important oil and gas provinces.”

Over 83,000 people are employed by the company worldwide, which announced an underlying replacement cost profit of $5.2bn for the third quarter of 2012.

BP is one of the world’s top oil and gas companies and offers customers fuel for transportation, energy, retail services and petrochemical products.

The company said it was “on track” for its 10-point strategic plan for 2014, which includes a programme for sustainable growth over the next decade.

Mr Dudley, said: “BP’s performance and the strong progress we are making in transforming the company give us the confidence to increase distributions to our shareholders.

“BP is becoming a tightly-focused oil and gas company. I am confident we will be well-positioned to grow long term sustainable free cash flow and create value for our shareholders.”

Six projects in the North Sea were due to begin in 2012, and three are now in line, while the final three are expected to start before the new year.

This was posted in Bdaily's Members' News section by Miranda Dobson .