BP says to continue Rosneft talks after deal lapses

17th May 2011, Comments 0 comments

British energy giant BP said on Tuesday that it will continue talks with Rosneft after the lapse of its Arctic exploration and share-swap deal with the Russian state oil giant.

BP issued a statement with the Russian shareholders in its joint venture in Russia, TNK-BP. Those shareholders -- known as Alfa Access Renova (AAR) -- had obtained a court injunction against the Rosneft deal, claiming it violated their TNK-BP agreement.

Across in Moscow, however, it emerged on Tuesday that Rosneft has pulled out of the BP deal and will look for new partners in Arctic oil exploration, Interfax quoted a source close to the company as saying.

"BP and AAR announced today that they would intensify their efforts to ensure TNK-BP's continued success following the lapse of the BP-Rosneft share swap transaction (and the related Arctic exploration opportunity)," they said in a joint statement.

"In recent months, BP has conducted detailed negotiations with AAR and Rosneft to seek a reasonable and businesslike solution that would allow the agreements to proceed to the satisfaction of all parties.

"Such a solution has not been found at this time, although talks will continue."

The historic Arctic deal agreement signed in January was hailed as a breakthrough for foreign investment in Russia and also a comeback for BP after the fiasco of the 2010 Gulf of Mexico oil spill disaster.

© 2011 AFP

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