BP is withdrawing its US$14 billion stake in Russian oil major Rosneft over Moscow’s invasion of Ukraine. BP’s 19.75% stake in Rosneft accounted for a third of the British company’s oil and gas production and more than half of its reserves.
“Russia’s attack on Ukraine is an act of aggression which is having tragic consequences across the region. BP has operated in Russia for over 30 years, working with brilliant Russian colleagues. However, this military action represents a fundamental change. It has led the BP board to conclude, after a thorough process, that our involvement with Rosneft, a state-owned enterprise, simply cannot continue,” said BP chair Helge Lund.
In addition to its stake in Rosneft, BP had three joint ventures with Rosneft — a 20% stake in the Taas-Yuryakh oil project in eastern Siberia, 49% of Yermak Neftegaz in Western Siberia, and 49% in the Kharampur oil and gas project.
BP also announced that CEO Bernard Looney is resigning from the board of Rosneft immediately. The other Rosneft director nominated by BP, former BP Group Chief Executive Bob Dudley, is also resigning from the board.
“We can no longer support BP representatives holding a role on the Rosneft board,” said Lund. “The Rosneft holding is no longer aligned with BP’s business and strategy and it is now the board’s decision to exit bp’s shareholding in Rosneft. The BP board believes these decisions are in the best long-term interests of all our shareholders.”
