Rosneft and BP announced that they have signed a binding agreement to dissolve the existing refining JV Ruhr Oel GmbH (ROG) as they move toward completion of the previously announced restructuring of the two companies’ German refining and petrochemical venture. The agreement was approved by the Rosneft Board of Directors at the meeting on December 31, 2015 and by the Board of BP Europa SE on 14 January, 2016.

When the restructuring is completed later this year, Rosneft will become a direct shareholder and increase its shareholding in the Bayernoil refinery from 12.5% to 25%; the MiRO refinery from 12% to 24%; and the PCK refinery – from 35.42% to 54.17% In exchange, BP will consolidate 100% of the equity of the Gelsenkirchen refinery and the solvent production facility DHC Solvent Chemie.

In December of 2015, Rosneft received approval of the deal from the Bundeskartellamt (German Anti-Trust Authority). European Commission approval of the deal is expected to be granted in first quarter of 2016.

The restructuring of Ruhr Oel GmbH will enable Rosneft and BP to re-focus their refining and petrochemicals strategies in Germany. The agreement demonstrates Rosneft’s shift to a fundamentally new level of operations in Western Europe and confirms the Company’s commitment to the creation of additional value for its shareholders.

Sole ownership of the Gelsenkirchen refinery will re-focus BP’s refining business in the heart of Europe and is in line with the company’s drive for greater simplification and efficiency.

The parties reconfirmed their desire to provide maximum support to each other during the restructuring process.

About BP

BP is one of the world's largest oil and gas companies, serving millions of customers every day in more than 80 countries, and employing nearly 85,000 people. BP's business segments are oil and gas exploration & production, and refining & marketing. In alternative energies, BP has low- and no-carbon wind and biofuels businesses. Through these activities, BP provides fuel for transportation; energy for heat and light; services for motorists; and petrochemicals products for plastics, textiles and food packaging. It has strong positions in many of the world's hydrocarbons basins and strong market positions in key economies.

About Rosneft

Rosneft is the leader of Russia’s petroleum industry and the world’s largest public oil and gas
company by liquid hydrocarbon production and reserves. The Company’s core operations are in hydrocarbon exploration and appraisal, production of oil, gas and gas condensate, offshore developments, refining, marketing of oil, gas and oil products inside and outside Russia, and investment activity.

Rosneft’s exploration and production geography spans across all key oil and gas provinces in Russia, namely Western Siberia, Southern and Central Russia, Timano-Pechora, Eastern Siberia and the Far East. The Company also implements projects in Kazakhstan, Algeria, Venezuela, Brazil, Vietnam, the UAE, Canada, and in the Gulf of Mexico. Offshore projects, including in the Arctic, take a special place in Rosneft’s portfolio. Rosneft has joined forces with ExxonMobil, Eni and Statoil to develop Russia’s offshore resources.