London February 27 2022: BP is to exit its shareholding in Russian oil giant Rosneft, the company has announced.
The firm has been under pressure over its nearly 20% holding – on Friday UK business secretary Kwasi Kwarteng is said to have told the oil company’s boss Bernard Looney about his “concern” over the involvement.
BP’s portion of oil output from the Rosneft stake is about 1.1 million b/d of oil equivalent, but this figure fluctuates in response to markets and Russian output policy, which is now bound to its agreement with OPEC. Of this figure, liquid petroleum accounts for approximately 860,000 b/d of BP’s Rosneft equity barrels.
The company’s sudden decision marks a dramatic shift in strategy, with Looney as recently as early February reiterating its commitment to Rosneft, which has seen output increases for the business since 2013.
“Russia’s attack on Ukraine is an act of aggression which is having tragic consequences across the region,” BP chair Helge Lund said in a statement.
“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.”
