BP mega deal with Russia

amcluesent

BP and Russia in Arctic oil deal

Oil giant BP has signed a joint venture with Russian energy giant Rosneft to exploit oil and gas Russia's energy-rich Arctic shelf.

The "strategic global alliance" will see the firms exchange expertise in exploring the region.

As part of the deal Rosneft will take 5% of BP's shares in exchange for approximately 9.5% of Rosneft's shares.

FACT - I hope peeps got in at under 350p back in the day!

CashStrappedTeen89

Hmmmm, no RNS has been released that i can see about this.
Any ideas on Sp with this info.
A lot of vairables when buying BP nowadays with lawsuits, partners ect.

Loughton_Monkey

Since it is Arctic oil, this is the start of a new Cold War? BP will go belly up, the only asset remaining will be the 9.5% Rosneft Shares in BP's safe. Trouble is, Rosnoff will write off its 5%, causing them to go belly up too. Incest is fun!

ses6jwg

i bought some a £3.02p last year

Reaper

Are people so quick to forget in the recent past Russia siezed control of a huge field off Shell for a pittance following government harrasment and trumped up charges?
http://www.nytimes.com/2006/12/21/business/worldbusiness/21iht-shell.3981718.html

What's to stop Russia letting BP pour money into the project then seizing control when the profits start flowing in?

blinko

Reaper wrote: »

Are people so quick to forget in the recent past Russia siezed control of a huge field off Shell for a pittance following government harrasment and trumped up charges?
http://www.nytimes.com/2006/12/21/business/worldbusiness/21iht-shell.3981718.html

What's to stop Russia letting BP pour money into the project then seizing control when the profits start flowing in?

i now its pretty ironic BP is going there

but i think its a good deal, as Rosneft have a stake in BP but im prety sure BP will be getting the harsher end of the bargin but its an unexplored area and me personally i will be going long on BP monday if the volumes look good

http://www.businessweek.com/news/2011-01-14/putin-backs-bp-partnership-with-rosneft-after-meeting-dudley.html

Jan. 15 (Bloomberg) -- Vladimir Putin backed a drilling partnership between BP Plc and state-run oil producer OAO Rosneft, a signal last year’s U.S. oil spill won’t hold back the U.K. company’s operations in Russia.

The government supports cooperation between Rosneft and BP on offshore projects in Russia and other countries, the Russian prime minister said yesterday in a meeting with BP Chief Executive Officer Robert Dudley near Moscow. The two companies may start by drilling in the Arctic Ocean and the government could back the project with tax breaks, Putin said.

Putin’s comments show Dudley’s appointment isn’t likely to be an impediment to BP in Russia, three years after he was ousted as head of oil venture TNK-BP because of a dispute between BP and its Russian billionaire partners. Dudley became CEO in October, tasked with rebuilding the London-based company’s reputation after a well blowout spilled crude into the Gulf of Mexico for 87 days.
“We hope to work with Rosneft in the future to build something that is very significant and groundbreaking” in Russia and around the world, Dudley said after the meeting. “Cooperating in the south Kara Sea should be a natural extension of what is already a very strong partnership.”
Arctic Circle

In October, Rosneft received the rights to develop three Kara Sea blocks, known as East Prinovozemelsk-1, 2 and 3, according to the government website. The Kara seas lies in the Arctic circle off Russia’s north coast.

Rosneft, Russia’s largest crude producer, is seeking strategic partners to grow into a leading energy producer “on all continents,” Chief Executive Officer Eduard Khudainatov said on Dec. 16. The company has said it may work with BP and Total SA to develop offshore fields.
Rosneft spokesman

Rustam Kazharov declined to comment.
BP and Rosneft’s partnership “may become large-scale and have a serious impact on the global oil and gas industry,” Putin said. He estimated Russia’s Arctic offshore may hold 5 billion metric tons of oil resources and 10 trillion cubic meters of natural gas.
“It’s my hope that you will see this step of cooperation with Rosneft as a very strong signal from BP in our confidence in the investment climate in Russia,” Dudley said.



The two companies, which have explored deposits off Sakhalin Island, agreed to carry out technical studies in the Arctic in November 2006. BP bought $1 billion of shares during Rosneft’s initial public offering in July that year.


Rosneft will pay 3.1 billion rubles ($103 million) for five offshore licenses it received without a tender earlier this month, Vedomosti reported Nov. 26, citing materials from the country’s subsoil agency, Rosnedra. That comes to an average of 0.8 cent a barrel of oil equivalent for the blocks, which include the three in the Kara Sea, the newspaper said.


--Editors: Torrey Clark, Will Kennedy
To contact the reporter on this story: Ilya Arkhipov in Moscow at iarkhipov@bloomberg.net; Anna Shiryaevskaya in Moscow at [EMAIL="ashiryaevska@bloomberg.net"]ashiryaevska@bloomberg.net[/EMAIL];


To contact the editor responsible for this story: Willy Morris at wmorris@bloomberg.net; Will Kennedy at wkennedy3@bloomberg.net

amcluesent

>i bought some a £3.02p last year<

That was the bottom wasn't it?

halight

amcluesent wrote: »

>i bought some a £3.02p last year<

That was the bottom wasn't it?

I bought in at £3.20 last year.

AndyGuil

TNK-BP. They already work with Russians.

Thrugelmir

halight wrote: »

I bought in at £3.20 last year.

I first bought into BP after they first de-nationalised at 1.22p.

ses6jwg

amcluesent wrote: »

>i bought some a £3.02p last year<

That was the bottom wasn't it?

Not quite.

I got them for 302.6883

I wish I had bought more as I only had £1k in spare capital at the time, but currently showing a 65% gain - quite rare for a blue chip I find