Russia's state-controlled oil giant OAO Rosneft announced Friday that it agreed to acquire a 50% stake in German refinery Rhur Oel GmbH from Venezuela's state oil firm.

According to details of the transaction, Rosneft will pay Petroleos de Venezuela SA $1.6 billion for the stake, excluding its "share of crude inventory and receivables to be valued at closing."

The deal makes Rosneft a partner with BP (NYSE:BP), as Ruhr Oel is a 50-50 joint-venture between Petroleos de Venezuela and the UK-based oil firm.

Rosneft's President Eduard Khudainatov said, "This transaction is consistent with our strategy to expand our presence with high quality assets in key international markets... 18% of Rosneft's refining capacity will be located in the heart of industrialized Europe."

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