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BP to buy back £5.2bn in shares.

Combination of Rosneft and TNK-BP would give $10bn in synergies.

BP has said it willl buy back £5.2 bn in shares, giving shareholders back the money they invested in a venture in Russia.

The oil producer said it  "expected to return to BP shareholders an amount equivalent to the value of the company's original investment in TNK-BP".

BP, along with the Russian oil producer Rosneft are planning to work on a series of projects in Arctic islands region.

The move comes as Rosneft closed its $55bn deal to buy BP’s Russian joint venture, TNK-BP.

Igor Sechin, CEO of Rosneft, said the two companies were working on the details of an offshore venture in the Arctic and would team up to develop Rosneft’s tight oil reserves in Siberia as well as fuel marketing ventures.

“We are currently choosing projects. We will definitely work with BP offshore . . . and take advantage of their experience and competence,” Sechin added.

Despite Rosneft’s exploration deals with rivals ExxonMobil, Eni and Statoil, BP still has opportunities to work with Rosneft in the Arctic, said Sechin.

The expanded company is expected to produce 4.2m to 4.3m barrels a day in 2013 and generate revenues of $160bn.

Bob Dudley, CEO of BP, said the closure of the TNK-BP takeover was a historic day for BP in Russia, adding that the deal gave the company a wonderful opportunity to forge a new partnership with a great Russian oil company”.

Rosneft has 41 oil and gas licences in the Arctic islands region.