Court grants Russian JV modification order

An arbitral panel has issued a consent order, allowing BP and the Alfa-Access-Renova (AAR) consortium to assign an interest in the proposed BP/Rosneft Russian Arctic joint E&P venture to TNK-BP.

Offshore staff

LONDON -- An arbitral panel has issued a consent order, allowing BP and the Alfa-Access-Renova (AAR) consortium to assign an interest in the proposed BP/Rosneft Russian Arctic joint E&P venture to TNK-BP.

Subject to agreement from Rosneft, the order also permits the proposed share swap between BP and Rosneft to go forward. But for this to happen, both BP and Rosneft would have to recognize that any shares received following the share swap would be held for investment purposes only.

They would also have to be placed in trust, with voting rights exercised by independent trustees. Neither company would have representatives on the other’s board arising from these holdings.

BP can now attempt to seek agreement from Rosneft on the assignment of the Arctic opportunity to TNK-BP, and modification of the terms of the share swap arrangement.

05/09/2011

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