Processing Magazine

BP-Rosneft $16 Billion Share Swap Deal Fails

May 17, 2011

BP''s hopes of making Arctic oil production the key to its recovery from the Gulf of Mexico spill were dealt a severe blow after it failed to secure a $16 billion share swap with Russia''s state-backed Rosneft, according to the Associated Press. BP PLC revealed a midnight deadline for the deal expired after it failed to broker a settlement with its Russian partners in TNK-BP, its existing joint venture in the country, who have objected to the Rosneft deal. The London-based company said that discussions would continue with all the parties, but a Rosneft official said the Russian company will now start considering partnership offers from other overseas oil companies.