Market in flurry over rumors BP may buy TNK stocks

The agitation around Tyumen Oil Company (TNK) stocks that has been around for over two weeks will have its outcome today. British Petroleum chief John Brown will present the results of the company's performance last year and is very unlikely to dodge a talk about TNK. It has been over a week since the market got into a flurry over rumors of British Petroleum's purchasing the shares of the Russian oil company. Driven up by these rumors, Tyumen Oil Company's stocks added over $1bn in value. If the deal takes place, it will be the largest investment ever made by a foreign company in Russia. However, until recently the deal's expected participants not only decline to provide any coverage on the matter, but also refused to confirm the fact the negotiations are underway.

Nonetheless, on February 10 the Wall Street Journal wrote British Petroleum could spend up to $4.5bn to buy the Russian oil company's stocks. BP could buy the Russian oil group's stocks that will result from combining the assets of SIDANKO and two companies currently owned by TNK International. With reference to competent sources The Wall Street Journal reported the details of the deal could be revealed this week, although the talks were not finished and the transaction terms could still be changed.

It is expected that the group will include SIDANKO, on which British Petroleum holds a 25 percent stake, and the assets of TNK International, TNK's parent company. This deal has been mulled over by the company for over a year. It could buy from a third to a half of the new company that will be the third largest oil producer in Russia and one of the world's ten largest oil companies with oil output of 1.1m barrels a day. The reserves of the new company that lacks a name so far will total 10.6m barrels against BP's 8.2m barrels, the Nezavisimaya Gazeta newspaper reported.

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