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. Last Updated: 07/27/2016

TNK-BP Firm on Assets Plan

RYAZAN -- Oil major TNK-BP plans to sell its Saratovneftegaz production unit, Orsk refinery and 50 filling stations, the firm's CEO, Robert Dudley, confirmed on Monday.

"The board of directors has encouraged the management to move ahead with the asset sale but the details of the sale and the buyers have yet to be finalized," he told reporters in Ryazan, where he was launching an upgrade of TNK-BP's refinery in Ryazan. The upgrade of the 300,000-barrel-per-day refinery will enable TNK-BP to start exporting large volumes of Euro quality diesel from next year.

"But it does not necessarily mean this will be the end [of such asset sales] in the long term," he added.

TNK-BP had said it was considering a sale of underperforming assets, but Dudley's remarks were the first confirmation that the disposal would go ahead after a board meeting on Dec. 8.

The firm has not said who might buy the assets, but press reports said last week that the Federal Anti-Monopoly Service had already approved an application from the fast-growing oil firm Russneft to buy the Saratov unit.

It had also received applications from potential buyers including Austria's OMV, London-listed Urals Energy and China's Sinopec.

The asset sales follow a year of restructuring at TNK-BP, which has consolidated more than 600 legal entities into one share, which first began trading last week.

TNK-BP said on Monday that it had completed the second stage of consolidating subsidiary companies and its free float of traded shares now represented 5 percent of the company's equity.