(AP) The chief executive of Russian oil company Rosneft says the takeover of TNK-BP could generate synergy savings of up to 5 billion.
The state-owned company on Monday unveiled a deal to take over TNK-BP, Russia's third-largest oil producer. It is buying BP's 50 percent stake for $17.1 billion in cash and 12.84 percent of Rosneft. It is buying the other half, owned by a group of Russian billionaires, for $28 billion.
Rosneft's CEO Igor Sechin told investors in a conference call Tuesday the company could gain between $3 and $5 billion by combining its resources with TNK-BP's.
Sechin said that, among other things, the takeover would give Rosneft access to sizeable oil fields that are much closer to a key China-bound pipeline than its own sites.