Azernews.Az

MOSCOW – Russia's TNK-BP, half-owned by British oil giant BP, will buy BP's producing and pipeline assets in Vietnam and Venezuela for $1.8 billion, TNK-BP was quoted by RIA Novosti as saying on Monday.

The acquisition will be fully financed by TNK-BP's own funds and will not require money from the company's shareholders, TNK-BP said in a statement.

An initial payment of $1 billion will be made on October 29, while the remaining funds will be paid when the deal is closed, which is expected in the first half of 2011 if all the necessary approvals from the Venezuelan and Vietnamese governments are given.

in Venezueala, TNK-BP will receive a 16.7 percent stake heavy crude producer PetroMonagas SA, a 40 percent stake in DZO field operator Petroperija SA, and a 26.7 percent stake in Boqueron SA.

The fields' total production volume amounts to 25,000 barrels of oil equivalent every 24 hours. They are operated by joint ventures created with Venezuelan state oil company PVDSA.

In Vietnam, TNK-BP will acquire a 35 percent stake in the shelf gas producing block 06-1, which includes the gas condensate fields Lan Tay and Lan Do, a 32.7 percent stake in Nam Con Son pipeline and terminal, as well as a 33.3 percent stake in the Phu My 3 electric station.

The assets' producing capacity stands at 30,000 barrels of oil equivalent per 24 hours given participation interest, or 15,000 barrels per 24 hours on compensatory basis.