BP approaches state-owned energy firms about Russia assets - report

BP has reportedly reached out to state-backed firms in Asia and the Middle East as it looks to offload its Russian assets.

Bloomberg cited people with knowledge of the matter as saying that BP has made preliminary approaches to China National Petroleum Corp. and Sinopec Group about the planned sale of its roughly 20% stake in Russia’s Rosneft PJSC.

It was understood the oil giant has selectively reached out to some potential buyers in the Middle East.

In addition, BP has been gauging interest from Indian firms like Oil & Natural Gas Corp. and Indian Oil Corp. in acquiring its stakes in some Russian oil and gas projects, Bloomberg said. However, the company’s efforts have gained little traction so far.

In February, Bloomberg reported that BP could also seek to do a deal with Rosneft, either handing the stake back or selling it at a huge discount. This is considered to be the most realistic option because BP would struggle to sell down on the market or find another buyer for the stake, given the sanctions on Russia.

A BP spokesperson told Bloomberg the company continues to pursue an exit from its interests in Rosneft and businesses with them in Russia, declining to comment further.