BP and Rosneft’s plans for exploiting a potential 40 billion barrels of oil in the Arctic together have been halted, as the deadline for a $16bn share-swap between them expired.
The companies have been sketching out a deal that would allow Arctic exploration since it was first mooted in January 2011, but they failed to reach an agreement with BP’s existing Russian oil partner AAR by Monday’s midnight cut off point.
BP and AAR responded by announcing that they would ‘intensify their efforts’ to ensure the continued success of their jointly owned TNK-BP.
Bob Dudley, BP group chief executive said: “BP remains committed to Russia, to working constructively with AAR in TNK-BP and to our existing good relationship with Rosneft.”
Future Arctic exploration could still be on the cards though, suggested Mikhail Fridman, Chairman of Alfa Group: “AAR remains dedicated to the success of TNK-BP, one of the most dynamic and successful oil companies in the world. As we have always stated, AAR is a long-term strategic investor, and we look forward to working with BP on delivering the next phase of TNK-BP’s growth, both in Russia and internationally.”