* Framework for integration talks with Rosneft agreed
* TNK-BP's 2012 net income down 13 percent to $7.58 bln
* TNK-BP shares up 4.5 pct, outpacing flat broader market
MOSCOW, Feb 28 (Reuters) - Russian crude producer TNK-BP, which is being taken over by state oil companyRosneft, posted a 13 percent drop in 2012 net incomeon Thursday due to higher taxes.
Rosneft is buying TNK-BP from British oil company BP and the AAR consortium of Soviet-born tycoons for a total of $55billion in cash and shares, in a deal that will create theworld's largest listed oil producer.
TNK-BP said on Thursday its net income fell to $7.58 billionlast year due mainly to an increase in export duty. Itsoperating cash flow, however, rose 22 percent to $13.24 billion.
Rosneft needs around $40 billion in cash to fund the dealand has already secured most of the financing via loans frombanks and agreements with trading companies. The company hassaid it may also use TNK-BP cash for the deal.
TNK-BP's Chief Financial Officer Jonathan Muir said thecompany's board had given the green light for management todiscuss integration with Rosneft.
"Preliminary agreement for a framework under whichmanagement will potentially work with Rosneft was agreed," Muirsaid about last week's board meeting, while declining todisclose details and his personal plans.
"We started dialogue with our counterparts in Rosneft," headded.
The completion of the deal would bring TNK-BP out of themanagement limbo it has been in since October when the deal wasannounced, and allow Rosneft to reassure customers and employeesabout contracts and start working through cost savings.
Shares in TNK-BP closed up 4.5 percent, compared with abroadly unchanged wider Moscow market.
Rosneft is expected to get the nod from regulators for thedeal soon, making it possible to close it in the first quarter,sources have said.
TNK-BP said its revenues last year rose slightly to $60.45billion from $60.20 billion in 2011.
Earnings before interest, tax, depreciation and amortisation(EBITDA) were 7 percent lower at $13.35 billion, mainly due tothe increase in export duties and other taxes, as well asone-off impairments related to its Ukraine business, the firmsaid.
TNK-BP said it had replaced 210 percent of its reserves in2012 under the U.S. Securities and Exchange Commission's LOF(life of field) standards, or SEC-LOF.
BP (BP.)
