Rosneft, BP agree share swap in Arctic deal

14th January 2011, Comments 0 comments

Oil giant BP and state-run Russian firm Rosneft announced a deal Friday to work together to exploit the resources in the Arctic and to swap shares so Rosneft will hold five percent of BP, a statement said.

"BP and Rosneft announced today that they have agreed a groundbreaking strategic global alliance," BP chief executive Bob Dudley and Rosneft President Eduard Khudainatov said in a joint statement issued at a press conference in London.

It said: "Following completion of this agreement, Rosneft will hold 5.0 percent of BP's ordinary voting shares in exchange for approximately 9.5 percent of Rosneft's shares."

They agreed "to explore and develop three license blocks -- EPNZ 1,2,3 -- on the Russian Arctic continental shelf" that were awarded to Rosneft last year and cover about 125,000 square kilometres in the South Kara Sea, it said.

© 2011 AFP

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