UK energy-giant BP plc’s (BP) share prices increased marginally following the news that the company is close to buying a stake in an oilfield in East Siberia from state-owned giant Rosneft.
According to a report, BP is close to paying about $800 million to acquire a stake in a Russian oil field that is likely to further strengthen the company’s relationship with Rosneft. BP refused to disclose any details.
According to a Moscow-based daily Kommersant, BP intends to tie up for a 20% stake in the Tass-Yuriakh field in East Siberia and is willing to shell out a sum between $700 million and $800 million for the same. BP already owns a stake of just under a fifth in the field.
Rosneft raised its stake in the Taas-Yuriakh Neftegazodobycha oil and gas producer to 100% in late 2013. Although, Rosneft, did not reveal the amount it spend to attain full control of the three western investment funds, analysts have estimated that the cost was between $400 million and $500 million at the time.
BP is one of the world's biggest energy companies and one of the six oil and gas “supermajors”, providing its customers with fuel for transportation, energy for heat and light, retail services and petrochemical products. Previously, the company used to report earnings through three segments: Exploration and Production, Refining and Marketing, and Other Businesses and Corporate.
BP carries a Zacks Rank #5 (Strong Sell). Investors may consider better-ranked stocks like Spectra Energy Partners, LP (SEP), Seadrill Partners LLC (SDLP) and Sandridge Mississippian Trust II (SDR) all of which sport a Zacks Rank #1 (Strong Buy).
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