BP Plc (NYSE: BP) intends to carry out a US $8 billion share repurchase program.

The buyback follows the completion of the sale of BP’s 50% interest in TNK-BP to Rosneft on March 21. The program is expected to return an amount equivalent to the value of the company’s original investment in TNK-BP to BP shareholders.

In 2003, BP invested around US $8 billion in cash, shares and assets in the formation of TNK-BP. Over the following decade BP received a total of US $19 billion in dividends from the joint venture. BP sold its interest in TNK-BP to Rosneft, followed by a reinvestment in Rosneft shares, for an overall consideration of US $12.48 billion in cash (including $0.71 billion in TNK-BP dividends received by BP in December 2012) together with shares representing 18.5% of Rosneft. As a result, BP now holds a 19.75% interest in Rosneft.

The size of the proposed buyback program, which is expected to exceed that required to offset the earnings per share dilution expected as a result of the sale of TNK-BP, also reflected the reduction in BP’s asset base following its major US $38 billion divestment program over the past three years, said Bob Dudley, BP Group CEO, in the release.

BP intends to retain the additional cash consideration of US $4.48 billion received from the sale of its interest in TNK-BP to reduce BP Group debt as part of its continuing commitment to maintaining a strong balance sheet.

BP Plc is headquartered in London.