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ROSNEFT has reportedly made an offer of US$28bn for BP’s 50% stake in TNK-BP, its joint venture with Russian consortium Alfa Access Renova (AAR).

Rosneft confirmed in July that it was in talks with BP regarding a bid, and the deadline for bids from parties interested in TNK-BP was 09:00 BST on 18 October. Sources have told various news outlets that a cash-and-share deal between the two companies has now been reached, after Rosneft CEO Igor Sechin flew to London for talks.

The relationship between BP and AAR has grown increasingly strained, and the TNK-BP venture looks to be at an end, after rumours surfaced earlier this week that Rosneft has offered a similar amount of money for AAR’s 50% stake. AAR could have bought out BP’s stake but if the rumours that it is also planning to sell are true, this is unlikely. BP tried to buy out AAR in 2011 but the offer was rejected.

According to the Financial Times, the BP board will consider Rosneft’s offer today, which could see the company take a 20% stake in Rosneft. BP CEO Bob Dudley is thought to be keen on the deal, having previously signed a US$16bn deal in January 2011 with Rosneft president Eduard Khudainatov to form a strategic alliance to explore blocks in the Arctic. This deal was later blocked by the courts after protests from AAR that the deal broke the terms of the TNK-BP agreement. In July, BP was ordered to pay compensation to TNK-BP as a result.

Rosneft’s $28bn offer would represent good value for BP, which invested US$8bn in TNK-BP in 2003 and has since received US$19bn in dividends. The money would also provide a boost as the company continues divestments to improve its balance sheet prior to a US ruling on compensation for the Deepwater Horizon disaster.

BP spokesman Robert Wine tells tce that BP is “reviewing options including any offers that we have received,” but would not comment further on what companies offers may have been received from.