Russia's Rosneft, UK's BP Agree to Dissolve Joint Venture in Germany

Russia’s Rosneft energy company and the UK’s BP have agreed to dissolve their Ruhr Oel GmbH (ROG) joint venture in Germany, the UK company announced Friday.

MOSCOW (Sputnik) — According to the company, the corresponding agreement was approved by the Rosneft Board of Directors at the meeting on December 31, 2015 and by the Board of BP Europa SE on January 14.

"Rosneft and BP today announced that they have signed a binding agreement to dissolve the existing refining JV Ruhr Oel GmbH (ROG) as they move toward completion of the previously announced restructuring of the two companies’ German refining and petrochemical venture," the statement read.

The restructuring will enable the companies to refocus on ther refining strategies in Germany, the statement said.

"The agreement demonstrates Rosneft’s shift to a fundamentally new level of operations in Western Europe and confirms the Company’s commitment to the creation of additional value for its shareholder," BP said.

In June, Rosneft and BP agreed on general conditions of the Ruhr Oel GmbH reorganization, which stipulate that the partners will share the stakes in four oil refineries and associated infrastructure in Germany.

The joint venture of Rosneft and BP owns stakes in four refineries in Germany, namely 100 percent of Gelsenkirchen, one-quarter of Bayernoil, 24 percent of MiRO, and 37.5 percent of PCK Raffinerie GmbH. In addition, the joint venture owns stakes in five of lead pipelines and marine terminals in the North, Baltic, Mediterranean and Adriatic seas.