BP/Rosneft Arctic link in limbo

An arbitral tribunal has ruled that the interim injunction issued to halt BP's proposed transaction with Rosneft should continue.

Offshore staff

LONDON – An arbitral tribunal has ruled that the interim injunction issued to halt BP's proposed transaction with Rosneft should continue. The action was brought by AAR, which is involved in BP’s other joint venture in Russia with TNK.

Earlier this year, BP and Rosneft announced plans to cooperate on exploration in the Russian Arctic, and to implement a share swap transaction.

BP said it would try to find a way to resolve the differences with AAR. It would also continue to honor the TNK-BP shareholders' agreement to which it is a party with AAR, and will respect the decision of the arbitrators.

BP added that TNK-BP remains its primary business vehicle in Russia, adding that it intends to continue with its exploration program with Rosneft offshore Sakhalin in eastern Russia.

03/25/2011

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