British Petroleum end rift with Rosneft

Rosneft, the Russian state oil giant seems as if it has been able to cement its grip on the talks it is having with British Petroleum over the company’s stake in the TNK-BP venture which it co-owns.

The relationship between BP and the Russian giant has been acrimonious over the last decade however the British company said that they welcome the interest from Rosneft. This announcement of interest in the deal has been largely unexpected as the company of hotly denied any suggestion that they were interested over the past several weeks. Rosneft were originally formed just nine years ago but since then they have become the fourth largest producer of crude oil in Russia.

BP have commented, “We are currently conducting discussions with the company and any other party who are interested in the deal. We fully expect negotiations to be conducted in good faith with Alfa Access Renova.”

AAR stated in recent weeks that they are currently in negotiations to acquire half of the shares that BP has in the joint-venture with the company. It is estimated that 25 percent stake of this would be worth around €8 billion. The shareholders in the joint-venture said that they are going to give the company three months in order to negotiate a deal before talks are going to be held with other parties you might be interested in purchasing the shares.

It is thought that this announcement is going to give BP an opportunity to resume its formal ties with Russia. The ties between the two have been limited after an alliance with Rosneft to explore the Arctic with a value of $16 billion was blocked by four billionaires. The Arctic deal ended up going to the US company Exxon Mobil and it is thought that it will combat the oil problems faced due to a volatile Middle East.