TNK-BP eyes Brazil oil and gas, may pay $1 billion: report

MOSCOW Thu May 26, 2011 3:17am EDT

Related Topics

MOSCOW (Reuters) - Russia's TNK-BP TNBP.MM, half owned by BP (BP.L), is ready to spend $1 billion to acquire a stake in oil and gas fields in Brazil as part of its foreign expansion, the daily Kommersant reported on Thursday.

Analysts say that due to BP's failure to secure a deal with Russia's top crude producer, Rosneft (ROSN.MM), after protests from BP's Russian partners -- much to the chagrin of the Kremlin -- TNK-BP has limited ability in acquiring new hydrocarbon licenses in Russia.

TNK-BP has already acquired assets in Venezuela and Vietnam from BP, which sold it to cover costs incurred after disastrous Gulf of Mexico oil spillage.

Kommersant, citing market sources, said on Thursday TNK-BP is in talks to buy up to 45 percent of oil and gas fields from Brazil's start-up state-run oil company HRT Participacoes HRTP3.SA.

TNK-BP and consortium of Russia-connected businessmen in the company, AAR, declined to comment.

The paper said it wants to acquire fields, located in the far-flung Solimoes Basin of the Brazilian Amazon region and will be considered after HRT buys out the stake from its partner Petra Energia of Brazil.

It also said TNK-BP valued the fields' resources at 2 billion barrels of oil equivalent.

(Writing by Lidia Kelly; editing by James Jukwey)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.