BP settles its TNK dispute with Russians

BP took a step towards deepening its alliance with Rosneft, the Russian oil company, as it ended seven years of acrimony with its partner in the TNK-BP venture that had been blocking its path.

BP and the AAR quartet of billionaires, which jointly own TNK-BP, yesterday announced a "comprehensive agreement" to settle all outstanding disputes after both parties agreed last month to sell their stakes to Rosneft.

It relieves BP from the threat of billions of dollars of legal payouts as it will see AAR dropping all outstanding court cases stemming from the TNK-BP joint venture.

AAR will waive a clause in the joint-venture agreement preventing BP from discussing Russian projects that do not involve TNK-BP, allowing it to discuss an alliance with Rosneft.