BP in Talks With Rosneft Over Siberian Oil Field Stake -Source

By Justin Scheck 

BP PLC is negotiating a deal with Kremlin-controlled oil giant OAO Rosneft that could give it a percentage of an Eastern Siberia field believed to have large petroleum reserves, according to a person familiar with the matter.

The talks for the U.K. oil and gas company to acquire a stake in the Taas-Yuriakh field come at a time when Western sanctions--imposed in response to Russia's role in Ukraine-- prohibit companies from exporting technology for tapping shale and arctic reserves to Russia. The proposed deal would likely not be subject to any such sanctions.

BP already owns nearly 20% of Rosneft, which has been under pressure due to the sanctions and oil prices that have fallen by more than 40% since June. It isn't yet clear how that pressure will affect BP's income from Rosneft, which paid BP a dividend of close to $700 million this year. Rosneft declined to comment. The talks were first reported by Kommersant.

Alexander Kolyandr contributed to this article

Write to Justin Scheck at [e-mail]

Access Investor Kit for BP plc

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=GB0007980591

Access Investor Kit for Rosneft

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=RU000A0J2Q06

Access Investor Kit for BP plc

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US0556221044

Subscribe to WSJ: http://online.wsj.com?mod=djnwires