BP blow as Rosneft deal collapses
BP's hopes of making the Arctic a key part of its recovery plan were dealt a major blow today by the failure of a share swap and exploration deal with Russian oil group Rosneft.
Talks to broker a settlement with TNK-BP, its existing Russian partner, which had blocked the deal, ended without agreement, meaning the UK firm missed a midnight deadline set by Rosneft to get the deal back on track.
BP said discussions would continue between all of the parties, but observers say the failure to conclude a deal could leave the way open for rival oil companies to take its place.
It also leaves a potentially huge hole in plans by new chief executive Bob Dudley to turn around the group following the Gulf of Mexico disaster last year.
The announcement is the latest twist in a protracted saga that started in January when BP and Rosneft announced an £8 billion share swap that also included exploration rights for the Arctic's Kara Sea.
Amid much fanfare, Mr Dudley hailed the Rosneft deal as "historic" and "groundbreaking", with analysts also praising the group for pulling off what was seen as a significant coup for the group after its US problems. Huge oil reserves are thought to lie under the Arctic Circle.
The deal was subsequently scuppered after TNK-BP successfully claimed it breached an earlier agreement that it had to be included in deals undertaken by BP in Russia.
The talks yesterday reportedly involved an £18.5 billion buyout of TNK-BP. It is owned by a consortium of Russian billionaires called Alfa Access Renova (AAR), who would have got cash and substantial stakes in both BP and Rosneft if a revised deal had been concluded.
Today BP said it was still hopeful a deal can be struck, adding it would intensify its efforts to ensure TNK-BP's continued success.
"In recent months, BP has conducted detailed negotiations with AAR and Rosneft to seek a reasonable and businesslike solution that would allow the agreements to proceed to the satisfaction of all parties. Such a solution has not been found at this time, although talks will continue," it said in a statement.
Mr Dudley added: "BP remains committed to Russia, to working constructively with AAR in TNK-BP and to our existing good relationship with Rosneft."
The Washington Post editor helped Bob Woodward and Carl Bernstein bring down President Nixon
Children's bookseller wins The Independent's new author search
Board creates magnetic field to achieve lift
- 1 Salisbury ranked seventh-best city in the world to visit in Lonely Planet’s Best in Travel 2015
- 2 Disney announces new female-led film Moana
- 3 Banksy has not been arrested: Internet duped by fake report claiming artist's identity revealed
- 4 Kentucky gang rape: 15-year-old boy left in critical condition after sexual attack by group at party
- 5 Russell Brand threatened with arrest after filming outside Fox News headquarters
Chicago voter tells Obama 'don't touch my girlfriend' – Obama stays super smooth
Oscar Pistorius: The brutal prison life that awaits disgraced athlete
Banksy has not been arrested: Internet duped by fake report claiming artist's identity revealed
Ebola outbreak: Nowhere is safe until virus is contained in Africa, claims the top doctor who beat it in Nigera
Raphael Ravenscroft dead: 'Baker Street' musician who played the most famous saxophone solo for just £27, dies aged 60
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Residents should throw a street party and mix with immigrant neighbours, councils told
Russell Brand threatened with arrest after filming outside Fox News headquarters
London bus driver 'kicks gay couple off for kissing'
Jose Manuel Barroso warns David Cameron against making 'historic mistake' over immigration reforms
Worst Airports of 2014: Poll names Islamabad airport in Pakistan worst in the world
iJobs Money & Business
£18000 - £23000 per annum + Comission: SThree: The SThree group is a world lea...
£20000 - £25000 per annum + OTE £Competitive: SThree: SThree Group and have be...
£23000 per annum + pension and 22 days holiday: Ashdown Group: An established ...
£27000 per annum + pension, 22 days holiday: Ashdown Group: An established ind...