BP PLC (BP.LN) has signed a preliminary agreement to supply natural gas from Rosneft Oil Co. (ROSN.MZ) within Europe, plus a deal to jointly implement gas projects in Russia, it said Friday.
Under a memorandum of understanding, BP's wholly-owned subsidiary BP Gas Marketing Ltd. will enter into a long-term sale and purchase agreement with Rosneft to deliver additional Russian gas supplies to Europe, starting from 2019.
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BP Russia President David Campbell said shifting to gas was a pillar of his company's strategy.
"Gas is a growing proportion of BP's portfolio and by the middle of the next decade we expect around 60% of our production to be gas, compared with around 50% Friday," he said.
BP is Rosneft's second-biggest shareholder after the Russian government, with a near-20% stake in the Russian oil major.
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(END) Dow Jones Newswires
June 02, 2017 07:12 ET (11:12 GMT)