BP and Rosneft dissolve German JV

BP and Rosneft have agreed to dissolve their refining joint venture Ruhr Oel GmbH as they move towards completion of the previously announced restructuring of their German refining and petrochemical venture.

Following completion of the restructuring, which is due to take place later this year, Rosneft will become a direct shareholder and raise its stake 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.

BP said sole ownership of the Gelsenkirchen refinery will re-focus its refining business in the heart of Europe and is in line with its drive for greater simplification and efficiency.

As far as Rosneft is concerned, it said the move demonstrates its shift to a fundamentally new level of operations in Western Europe and confirms its commitment to the creation of additional value for its shareholders.

At 1015 GMT, BP shares were down 2% to 340.60p.