. Last Updated: 07/27/2016

BP Says No Deal on Slavneft

Oil major BP said Monday its agreement to merge its Russian assets with Tyumen Oil Co., or TNK, would exclude TNK's stake in oil firm Slavneft, but that this would not affect the deal overall.

BP sealed one of the largest transactions in Russian corporate history in February when it agreed to pay $6.75 billion for a 50 percent stake in the new combined firm, the third-largest in the country.

That deal did not include the assets of Slavneft, which TNK bought later in a privatization auction in a joint bid with rival Sibneft.

A TNK official said in March that TNK's half of Slavneft, which produces 300,000 barrels of oil per day, could be thrown in if BP were prepared to pay extra.

"We studied the information and the commercial terms of the deal and decided not to pursue the opportunity at this time," BP spokesman Peter Henshaw said.

"But our global deal is not in trouble and is moving ahead well, because Slavneft's assets were never part of the big deal," he added.

Vedomosti on Monday cited a source close to TNK as saying: "We were unable to reach a compromise on the price. Now we cannot exclude that our stake could be sold to someone else."

Sibneft and TNK said early in March they would split Slavneft between them. Since then, however, Sibneft has agreed to merge with Yukos to form one of the world's largest oil firms.