The British oil giant and the Alfa Access-Renova (AAR) consortium of Russian billionaire shareholders signed a memorandum of understanding, which also includes an option to sell up to 20% of a TNK-BP subsidiary through an initial public offering (IPO) on international financial markets.
The memorandum is due to be finalized in detail over the coming months, BP said in a statement.
"It will create a stable base from which to grow the joint venture to the benefit of everyone involved, including the Russian state for which strong capital investment and continued technical innovation to boost declining oil output are important," BP Chairman Peter Sutherland said in the statement.
The deal is a concession by BP to a number of its Russian partners' demands, including the removal of BP-appointed chief executive Robert Dudley, whom they accused of acting in BP's interests only, and the appointment of three independent executives.
The British oil major earlier accused the Russian shareholders of orchestrating a state harassment campaign against TNK-BP, Russia's third largest producer, and seeking to seize control of the venture.
BP chief executive Tony Hayward described the agreement as "a sensible means of resolving a situation that could not continue without causing serious damage to what has been an immensely successful joint venture for all concerned."
The deal will involve the appointment of a new independent CEO to be nominated by BP and approved by the TNK-BP board.
TNK-BP's main board will be adjusted in size to four representatives each from BP and AAR, together with the three new independent directors not affiliated to either side. The company will continue to operate under English law, the statement said.
Dudley is currently running the company from abroad. He left Russia in July saying he was being harassed. A Moscow court has since banned him from working in Russia for two years.
TNK-BP posted a net profit of $4.7 billion in the first six months of 2008 or twofold up year on year.
