BP Fails To Salvage Its Arctic Oil Deal With Rosneft

“(Reuters) – BP’s plan to gain a foothold in Russia’s offshore Arctic oilfields through a deal with state-controlled Rosneft has collapsed, opening the way for other oil groups to try to fill its place.

The tie-up unravelled because BP failed to mollify partners in its existing Russian venture TNK-BP. They argue the British company had no right to strike a new deal in the country without them.

BP chief executive Bob Dudley had trumpeted the Arctic exploration pact and share swap with Rosneft, signed in January, as a signal BP could still offer growth after its disastrous Gulf of Mexico oil spill last year.

While some said BP was better off not pursuing the deal, failure to see it through has been seen as an embarrassment for Dudley, who said on Tuesday talks aimed at resolving the problem with TNK-BP partners had not reached agreement.”

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Negotiations continue despite expired deadline