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Antitrust watchdog approves BP petition to buy 49% in Rosneft’s subsidiary

Earlier, BP's application was approved by the antitrust watchdog of Germany

MOSCOW, February 27. /TASS/. The Federal Antimonopoly Service (FAS) of Russia approved the request of BP to purchase a 49% stake in a subsidiary of Rosneft - Kharampurneftegaz, the regulator said.

Earlier, BP's application was approved by the antitrust watchdog of Germany.

In January, speaking on the sidelines of the World Economic Forum, Chief Executive Officer of the international oil and gas major Robert Dudley said that BP expects to close a deal on acquisition of a stake in Kharampurneftegaz in 2018.

"I hope soon, may be this year, I mean finalizing [the deal]," Dudley said. The top manager did not detail the amount of BP investments into the project, referring to an early stage of the deal, but noted that it is "significant."

It was reported earlier that Rosneft and BP agreed to establish a joint venture on Kharampurneftegaz base to develop Kharampurskoe and Festivalnoe fields in the Yamal-Nenets Autonomous District.

Currently, state-owned oil company Rosneft owns Kharampurneftegaz via RN-Gaz company, which unites gas assets of Rosneft.

In the future joint venture Rosneft will hold 51% and BP will have 49%.

Total reserves of Kharampurskoe and Festivalnoe fields are estimated at 880 bln cubic meters of gas. Rosneft and BP plan to produce 11 bln cubic meters of gas at the first stage. Rosneft will offer produced gas on the domestic market.