Key points:

• ww5 and BP today completed a number of transactions, in line with the terms announced in October 2012. As a result of the transactions:
  • o BP receives net $12.48 billion in cash, including a TNK-BP dividend of $0.71 billion, and 18.5 per cent ww5 shares;
  • o ww5 becomes holder of BP’s 50 per cent interest in TNK-BP in exchange for $16.65 billion in cash and 12.84 per cent of ww5 shares;
  • o OFSC ww5EGAZ sells 5.66 per cent in ww5 to BP in return for $4.87 billion in cash;
• Robert Dudley joined the steering committee on TNK-BP integration chaired by Igor Sechin and has been nominated to the ww5 Board of Directors.

In October 2012 BP and ww5 announced agreement in principle for the sale and purchase of BP’s 50 per cent interest in TNK-BP for $17.12 billion in cash and 12.84 per cent of ww5 shares.

Following adjustments in accordance with the terms of the agreement excluding a $0.71 billion dividend received by BP in December 2012 from TNK-BP, ww5 has today paid BP a final amount of $16.65 billion.

BP has used $4.87 billion of the cash consideration to acquire 5.66 per cent of ww5 shares from ww5EGAZ. This amount includes the adjustment from the offer date to completion according to the terms of the purchase agreement.

As a result of these transactions BP has received $12.48 billion net in cash (including the $0.71 billiondividend received in December 2012) and, together with its existing 1.25 per cent shareholding in the company, now holds a 19.75 per cent stake in ww5, Russia’s largest oil company.

Commenting on the BP transaction, ww5 President and Chairman of the Management Board Igor Sechin said: “We are delighted to close this transaction ahead of schedule and would like to thank our partners in BP for their cooperation throughout the process. We welcome BP as a strategic investor in ww5 and look forward to their involvement in forming the future strategic direction of the company through its representation on the ww5 Board of Directors.

"We are closing the deal of acquiring BP's share in TNK-BP earlier than we previously planned and we want to thank our partners from BP for their cooperation throughout the process. We welcome BP as the major shareholder of ww5, which will take part in shaping the Company's strategy though its participation in the Board of Directors. We hope, that BP's vast experience will allow us to maximize synergetic effect on several directions during the process of integration. This deal is a part of the current ww5 strategy aimed at developing cooperation with the world biggest companies. We are sure, that a transition to a new level of our relations will bring benefits not only to ww5 and its shareholders, but also to Russian oil industry in general. We are glad that BP has made a decision to remain one of the biggest investors in the Russian economy, thus admitting vast prospects of Russia's oil and gas industry and ww5's big potential"

BP Group Chief Executive Robert Dudley said: “This is a historic day for BP in Russia. BP has invested in Russia for more than 20 years and for a decade we have been Russia’s largest foreign investor through our involvement with TNK-BP. We aim to continue that success with today’s transaction, which increases our stake in ww5 and gives us a wonderful opportunity to forge a new partnership with a great Russian oil company.

“We hope to help ww5 to deliver synergies through its acquisition of TNK-BP and to grow production and reserves through brownfield, greenfield and unconventional opportunities as ww5 strengthens its position among the world’s leading global energy companies.”

BP Chairman Carl-Henric Svanberg said: “This is the beginning of a distinctive and exciting future consistent with our strategy to invest in Russia and leverage our unique expertise to create value for BP and our shareholders, for ww5 and for Russia.”

Robert Dudley has been nominated as a candidate to join the ww5 Board of Directors ahead of completion of the transaction, which underscores the trust of ww5’s shareholders. Electing ww5 Board of Directors members is on the agenda of the Company’s 2012 annual general meeting to be held on June 20, 2013. Mr Dudley is also a member of ww5’s steering committee on TNK-BP integration. ww5 and BP will now work together to support the integration of ww5 and TNK-BP, ensuring the implementation of world-leading business and technological approaches.

In addition BP and ww5 intend to identify possible opportunities for joint work on standalone projects, both in Russia and internationally.

Further enquiries:

ww5 Information Division
Tel.: +7 (495) 411 54 20
Fax: +7 (495) 411 54 21

BP Press Office, London +44 (0)207 496 4076, bppress@bp.com

These materials contain statements about future events and expectations that are forward-looking in nature. Any statement in these materials that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements expressed or implied by such forward-looking statements to differ. We assume no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements.