BP's (NYSE:BP) TNK-BP Joint Venture Signing Ukraine Shale Gas Agreement

In its ongoing strategy to diversify geographically and by product, BP's (NYSE:BP) joint venture with Russian billionaires, TNK-BP, is reportedly close to signing a shale gas exploration agreement with Ukraine.

They should sign a memorandum for that purpose soon. TNK-BP has a refining business in Ukraine at this time.

TNK-BP has already signed on to acquire BP's assets held in Venezuela and Vietnam in order to expand operations beyond Russia.

BP's (NYSE:BP) Venezuela Assets Priced at $800 Million

According to Venezuela's Oil Minister Rafael Ramirez, the value of assets held by BP (NYSE:BP) in the country which they've been approved to sell to TNK-BP, is $800 million.

TNK-BP is a joint venture between BP and a group of Russian billionaires.

Ramirez said in a press conference, "We authorized the purchase by TNK-BP of BP's stakes ... it is an $800 million transaction that they have agreed. We are going to make all the documents to allow it to happen."

Assets to be sold include Petroperija and Bouqeron fields, which produce light-oil, and Petromonagas, which processes heavy crude into lighter synthetic oil, which is then sent to refineries to be processed again. These projects are majority owned by PDVSA.

BP is selling the assets as part of their effort to raise $30 billion to pay for Gulf liabilities.