BP is to buy $2.9bn (£1.8bn) worth of oil products from Rosneft the Russian state-controlled oil and gas giant.

Dudley and Sechin

BP chief executive Bob Dudley, left, with Rosneft president Igor Sechin

By  John Ficenec

BP is to buy $2.9bn (£1.8bn) worth of oil products from Rosneft the Russian state-controlled oil and gas giant.

Rosneft, in which BP has a near-20pc stake the second largest holding behind the Kremlin, said yesterday in a filing its board had approved a deal to sell up to 3.2m tonnes of oil products to the British based oil major, according to agency reports.

The sale is to include up to 660,000 tonnes of naphtha, used as lighter fluid and in camping stoves, for up to $700m and up to 1.26 million tonnes of fuel oil for up to $940.3m from Tuapse, on the Black Sea coast.

Rosneft also said its board approved a deal to sell up to 1.3m tonnes of gasoil to BP for up to $1.2bn.

Rosneft did not disclose the timeframe for the supplies.

Earlier this year Rosneft announced deals worth more than $13 billion to sell its crude oil and products to BP.

BP’s share in Rosneft generated $1.1bn in pre-tax profit on a replacement cost basis, according to results for the nine months ended September 30.

Rosneft announced last week the repayment of $5.1bn in loans used to fund the $27bn TNK-BP acquisition, adding that repayments were ahead of schedule.

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