BP (BP)

TNK-BP

        On August 29, 2003 BP and the Alfa Group and Access-Renova (AAR) combined certain of their Russian and Ukranian oil and gas businesses to create TNK-BP, a new company owned and managed 50:50 by BP and AAR. TNK-BP is a joint venture and accounted for under the gross equity method. BP contributed its 29% interest in Sidanco, its 29% interest in Rusia Petroleum and its holding in the BP Moscow retail network. There was additional consideration from BP to AAR comprising an immediate $2,604 million in cash (which was subsequently reduced by receipt of pre-acquisition dividends net of other adjustments, of $298 million) together with annual tranches of $1,250 million in BP shares payable in 2004, 2005 and 2006. There were costs of $45 million in connection with the transaction. The first tranche was issued in September 2004. BP also agreed with AAR to incorporate AAR's 50% interest in Slavneft into TNK-BP in return for $1,418 million in cash (which was subsequently reduced by receipt of pre-acquisition dividends of $64 million to $1,354 million). This transaction was completed on January 16, 2004.

TNK-BP

        On August 29, 2003 BP and the Alfa Group and Access-Renova (AAR) combined certain of their Russian and Ukranian oil and gas businesses to create TNK-BP, a new company owned and managed 50:50 by BP and AAR. TNK-BP is a joint venture and accounted for under the gross equity method. BP contributed its 29% interest in Sidanco, its 29% interest in Rusia Petroleum and its holding in the BP Moscow retail network. There was additional consideration from BP to AAR comprising an immediate $2,604 million in cash (which was subsequently reduced by receipt of pre-acquisition dividends net of other adjustments, of $298 million) together with annual tranches of $1,250 million in BP shares payable in 2004, 2005 and 2006. There were costs of $45 million in connection with the transaction. The first tranche was issued in September 2004. BP also agreed with AAR to incorporate AAR's 50% interest in Slavneft into TNK-BP in return for $1,418 million in cash (which was subsequently reduced by receipt of pre-acquisition dividends of $64 million to $1,354 million). This transaction was completed on January 16, 2004.