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    TNK-BP sells Udmurtneft to Rosneft-Sinopec alliance - source

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    An alliance of Russian state-owned oil company Rosneft and China's Sinopec (NYSE: SNP) has bought Udmurtneft (RTS: UDMN) from the Russian-British joint venture TNK-BP (RTS: TNBP), a source said Monday.

    MOSCOW, June 5 (RIA Novosti) - An alliance of Russian state-owned oil company Rosneft and China's Sinopec (NYSE: SNP) has bought Udmurtneft (RTS: UDMN) from the Russian-British joint venture TNK-BP (RTS: TNBP), a source said Monday.

    Russia's Federal Anti-Monopoly Service said in April that it had allowed nine companies to bid for Udmurtneft.

    "It [Udmurtneft] has been sold. According to my information, [the buyers were] Rosneft and the Chinese," the source said, declining to specify the size of the deal.

    TNK-BP reported that the company's board had finally decided on the sale of the largest oil producer in the republic of Udmurtia, in the eastern part of European Russia, but did not comment on the buyer.

    Rosneft also declined to make any official comments.

    According to unofficial information, Rosneft joined China Petroleum and Chemical Corporation Sinopec to participate in a tender to buy Udmurtneft in mid-May.

    Russian oil companies Sibneft, majority-owned by energy giant Gazprom, Russneft, and Kazakhstan's KazMunaiGaz, along with Austria's OMV and Hungary's MOL, were among the companies competing for the controlling stake in Udmurtneft, which accounts for 60% of crude output in Udmurtia.

    Udmurtneft, with annual oil production of some 6 million metric tons (120,500 bbl/d), is currently developing 26 oil fields in the region.

    It was announced earlier that applications for the tender could be submitted until April 29, and that the TNK-BP board of directors would discuss the auction procedure by late May.

    During preparations for the tender, Deutsche Bank, which consulted TNK-BP on Udmurtneft's sale, became the nominal owner of 99.49% of Udmurtneft's common stock, and 88.99% of its preferred non-documentary shares.

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