Forgot your password?

Choose a newsletter

Premium access provided by ENSTA

Your premium access provided by ENSTA

Enter your email to begin

Premium access granted to you by Expatica

You've been given FREE premium access to Worldcrunch

Enter your email to begin


With Putin's Help, BP May Team Up With Russian State To Explore Arctic For Oil



MOSCOW - Russian President Vladimir Putin is back in the middle of the oil business.

Putin met this week with the head of Rosneft, a partially state-owned oil company, as well as the president of BP and a representative from the British multinational's board of directors to see if a partnership between the two firms was possible, Kommersant reported.

According to people familiar with the proposed deal, Rosneft would buy BP’s 50 percent stake in THK-BP, a joint venture between BP and Alfa Access Renova, a Russian company owned by four billionaires. Rosneft would pay for half of the deal with cash, and the other half would be paid for in shares.

Under the current plan, BP would get 12.53% of Rosneft’s shares, making it the largest shareholder in the company after the Russian government, Kommersant reported.

But a BP spokesman told the BBC, “No formal offers have been received, so any figures being bandied about are pure speculation at this stage.”

The two companies hope to work together to explore the Russian Arctic for oil, but their attempts to form a partnership have been complicated by BP’s soured relationship with its partners in THK-BP, Alfa Access Renova, the BBC reported.

In addition, the whole deal will need to have the approval of the Russian government. Kommersant reports, however, that the Russian government is not currently prepared to give the green light.

Sign up for our weekly Global Biz & Innovation newsletter now

Be a part of the conversation. Click to show comments
About this article source Website:

Load More Stories

Unlimited access to exclusive journalism, the best world news source across all your devices

Subscribe Now Photo of Worldcrunch on different devices

Your premium access to Worldcrunch is provided by

University of Central Lancashire

Please register to begin

By registering you agree to our terms of service and privacy policy.