BP Close to Securing Arctic Oil Deal With Rosneft

BP PLC is close to securing a deal to partner with Russia's Rosneft in a long-coveted offshore oil project in the Arctic, Rosneft President Igor Sechin said Thursday.

Mr. Sechin was speaking as the Russian oil giant just closed deals worth around $55 billion to take over TNK-BP from BP and a group of Soviet-born billionaires to become the world's largest listed oil producer.

Mr. Sechin said Rosneft had 41 offshore licenses and was working with BP to select an offshore oil project "in the nearest future."

Mr. Sechin said he saw $10 billion worth of synergies in the TNK-BP deal, with the upstream, or exploration and production, sector the division with the biggest potential for increasing efficiencies.

He said Rosneft will strengthen the exploration and production unit and as such create a new role of chief geologist at the company.

He also said Rosneft would form a new division to develop the company's gas business.

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