No breakthrough in BP/Rosneft alliance talks

The proposed BP-Rosneft share swap transaction and proposed Arctic exploration program has lapsed.

Offshore staff

MOSCOW -- The proposed BP-Rosneft share swap transaction and proposed Arctic exploration program has lapsed.

BP tried without success to persuade Alfa- Access- Renova (AAR), its partners in the Russian TNK-BP joint venture, not to stand in the way of the new alliance.

The two parties had been negotiating with Rosneft for a solution to allow the agreements – first announced in January - to proceed to the satisfaction of all parties. No breakthrough was achieved, although talks will continue.

A statement claimed that nevertheless, both BP and AAR “see significant advantages in continuing to deepen this dialogue and cooperation with Rosneft."

Bob Dudley, BP Group CEO said: "BP remains committed to Russia, to working constructively with AAR in TNK-BP and to our existing good relationship with Rosneft significant benefits to BP shareholders, to Rosneft, AAR and Russia...

"TNK-BP has been an excellent investment for all parties since 2003 and it is gratifying that both BP and AAR have agreed to look beyond the disagreements of the past few months and to fully focus on this important and successful business we have built together. At the same time, we look forward to continuing our work with Rosneft in our Sakhalin joint venture…and considering other future projects."

Mikhail Fridman, chairman of Alfa Group, said: “AAR also sees significant benefit to developing cooperation with Rosneft within the framework of the TNK-BP Shareholder Agreement, and we plan to continue discussions about potential collaboration among BP, Rosneft, and AAR."

05/17/2011

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