British energy giant BP has ceded its share of an Arctic oil exploration pact with Rosneft to 50%-owned affiliate TNK-BP. The outcome is a victory for its Russian partners in the business who have fought for a slice of the action.
A parallel $18 billion share swap deal between the British oil company and Russia's state-controlled oil group Rosneft can now go ahead, the TNK-BP partners said in a joint statement following a decision by an arbitration panel.
Both moves are subject to the agreement of Rosneft. Rosneft declined to comment, but the Russian billionaires that own the other half of TNK-BP expressed their satisfaction.
'We welcome today's developments,' said Stan Polovets, chief executive of Alfa-Access-Renova (AAR), the consortium that represents the quartet of billionaire shareholders. AAR had objected to the BP-Rosneft deal, saying that they had exclusivity on BP's Russian exploits and has sought redress through legal challenges.
