BP-Rosneft deal to explore Arctic blocked

By OGJ editors
HOUSTON, Mar. 25
-- A January Arctic exploration and stock-swap agreement, described by parties Rosneft and BP as “historic,” has encountered trouble in a Swedish arbitration panel.

The panel blocked the $8 billion deal in a ruling that upheld a challenge by the Alfa-Access-Renova (AAR) consortium, BP’s Russian partner in TNK-BP.

AAR said BP’s agreement with Rosneft violated the TNK-BP shareholder agreement, which it said required BP to involve AAR owners in its Russian ventures.

In a statement, BP said its agreements with Rosneft “cannot for now go ahead in the form intended.” It said it would seek a determination whether the share swap can proceed alone.

At completion of the original deal, Rosneft was to hold 5% of BP’s ordinary voting shares, and BP was to hold 9.5% of Rosneft’s shares (OGJ, Jan. 24, 2011, p. 25).

The deal called for creation of a joint operating company—66.67% Rosneft and 33.33% BP—to explore blocks covering 125,000 sq km in relatively shallow water of the South Kara Sea.

BP said it “looks forward to finding a way to resolve its differences with its Russian partners to allow these important Russian Arctic developments to proceed in future.”

At the time of the agreement, BP and Rosneft said their venture would be the first major equity-linked partnership between a national and international oil company.

Related Articles

Shell submits revisions to its 2015 Chukchi Sea exploration plan

08/29/2014 Shell Offshore Inc. submitted revisions to its previously approved Chukchi Sea exploration plan on Aug. 28, a spokesman for the company confirmed. ...

BLM announces California oil, gas strategy as CCST issues report

08/29/2014 The US Bureau of Land Management’s California state office announced a comprehensive strategy for its oil and gas program in the state after receiv...

Lundin lowers resource estimate for Luno II discovery

08/29/2014 Lundin Norway AS, a wholly owned subsidiary of Lundin Petroleum AB, has drilled appraisal well 16/4-8 S in the Luno II discovery 15 km south of Edv...

Noble posts drilling results for Katmai, Dantzler prospects in gulf

08/28/2014 Noble Energy Inc., Houston, has advanced its exploration and appraisal drilling operations on the Katmai prospect on Green Canyon Block 40 and the ...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected