Siberian Oil Deal Sees BP Bet on Russia’s Pivot Toward China

June 22, 2015

BP Plc’s $750 million purchase of a Siberian oilfield stake is as much a bet on China as it is on Russia.
Taas-Yuriakh Neftegazodobycha LLC’s blocks near China’s northern border will supply the planned Tianjin refinery on the east coast, according to OAO Rosneft, which sold the 20 percent holding last week. BP Chief Executive Officer Bob Dudley predicts the unit’s natural gas reserves will prove strategic as Russia develops its Far East and builds ties with the world’s biggest energy consumer.