BP, Rosneft Sign Deal to Supply Natural Gas to Europe

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.

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.

-Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749

(END) Dow Jones Newswires

June 02, 2017 07:12 ET (11:12 GMT)