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BP and Russiaâ€™s State-Owned Oil Firm Announce Deal

14 January 2011 23:57 (UTC +04:00)

Baku â€“ APA. BP, the British oil company, and the Russian state-owned Rosneft oil firm on Friday announced a share-swap agreement under which they will jointly explore and develop the off-shore resources of Russia’s Arctic continental shelf, APA reports quoting â€œThe Voice of Americaâ€.
The billion-dollar arrangement covers a large area of the South Kara Sea which BP officials say could contain vast amounts of oil and gas.
It was outlined during a news conference in London involving BP Chief Executive Bob Dudley and Rosneft President Eduard Khudainatov just hours after Russian Prime Minister Vladimir Putin announced the deal in Moscow.
The British-Russian off-shore exploration agreement raised immediate concerns in Washington with one Congressman calling for an immediate review by U.S. regulators.
Under the share swap, Rosneft will acquire 5 percent of BP voting shares valued at nearly $8 billion in exchange for 9.5 percent of Rosneft shares. The deal is expected to be completed in the coming weeks.
BP gained notoriety last year when one of its off-shore oil platforms exploded in the Gulf of Mexico, creating the worst oil spill in U.S. history.