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

Beach Energy extends success in Cooper western flank

03/31/2014 Beach Energy Ltd., Adelaide, has extended its successful run of oil discoveries in the western flank Cooper-Eromanga basin play in South Australia ...

White House eyes steps to curb oil, gas methane emissions

03/29/2014 The White House announced additional steps to reduce methane emissions from oil and gas operations as part of a broader strategy. They included reg...

Tullow advances Kenya exploration program

03/28/2014 Tullow Oil PLC has moved forward with exploration and appraisal activities conducted by four rigs operating on Blocks 10BB and 13T onshore Kenya.

Lundin completes appraisal wells for Johan Sverdrup

03/28/2014 Lundin Norway AS, a wholly owned subsidiary of Lundin Petroleum AB, has completed Johan Sverdrup appraisal wells 16/3-8 S and 16/3-8 S T2 in the ea...

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