Russian state-controlled oil giant Rosneft will produce 5 percent of global oil after acquiring all of TNK-BP, Rosneft CEO Igor Sechin said on Tuesday.

“Oil production will rise from 2.4 million barrels per day to 4.1 million bpd and overall output (of hydrocarbons) will grow to 4.6 million barrels (of oil equivalent) per day from the current 2.6 million bpd,” Sechin said in a conference call with investors.

Rosneft announced landmark deals on Monday to buy 100 percent of TNK-BP from British oil major BP and the AAR consortium of Russian billionaire shareholders.

Under the terms of the deals, BP will receive $17.1 billion in cash for its 50 percent stake plus stock representing 12.84 percent of Rosneft’s shares while the AAR consortium of Soviet-born billionaire shareholders will sell its 50 percent stake in the joint venture “for cash consideration of $28 billion.”

BP also intends to use $4.8 billion of the cash consideration to acquire a further 5.66 percent stake in Rosneft from the Russian government. BP would acquire the Rosneft shares from the Russian government at a price of $8 per share (representing a premium of 12 per cent to the Rosneft share closing price on the bid date: 18 October 2012), the British oil giant said in a statement.

Therefore, after the proposed transaction is completed, BP will acquire a total 18.5 percent stake in Rosneft and net $12.3 billion in cash.

“This would result in BP holding 19.75 percent of Rosneft stock, when aggregated with BP’s 1.25 percent current holding in Rosneft.”