Global Processing

Consortium Rejects BP Proposal Over Deal with Russia''s Rosneft

March 14, 2011
BP PLC''s partners in Russian joint venture TNK-BP rejected a proposal by the British oil company, reports the Associated Press. BP said the consortium of Russian billionaire shareholders did not accept an offer to involve them in talks about the Rosneft deal at a TNK-BP board meeting in Paris. "A proposal by BP''s nominated directors, which would have allowed TNK-BP to hold initial discussions with Rosneft about pursuing the Arctic opportunity, was rejected by Alfa, Access and Renova (AAR)," BP said in a statement. The AAR consortium, which has four representatives on the TNK-BP board has argued that BP''s proposed $8 billion share swap deal with Rosneft violates the TNK-BP shareholders'' agreement and would erode the joint venture''s competitive advantage. AAR last month won a High Court injunction in London that has put the deal on ice until the dispute is resolved. The two sides underwent court-ordered arbitration this week and a ruling is expected by the end of the month.