State-controlled oil company Rosneft will likely pull out of the share swap deal with British Petroleum after BP’s Russian partners in TNK-BP (Alfa-Access-Renova) refused to sell its stake, Reuters reported, citing a source close to Rosneft.
BP and Rosneft made a last-ditch $32 billion offer including $9 billion in BP stock to buy out AAR, the source close to Rosneft said. But there was no agreement and, after months of wrangling, Rosneft has decided to pull out and search instead for new partners to explore the three Arctic Kara Sea blocks earmarked for the offshore venture with BP. Rosneft has been in talks with Exxon, Shell, Chevron and Chinese companies to explore the offshore territory, a source close to the company told Reuters.
BP and Rosneft made a last-ditch $32 billion offer including $9 billion in BP stock to buy out AAR, the source close to Rosneft said. But there was no agreement and, after months of wrangling, Rosneft has decided to pull out and search instead for new partners to explore the three Arctic Kara Sea blocks earmarked for the offshore venture with BP. Rosneft has been in talks with Exxon, Shell, Chevron and Chinese companies to explore the offshore territory, a source close to the company told Reuters.
A source close to BP said it still hoped to buy out its TNK-BP partners, although there was no timeline for this. The company said talks with Rosneft and AAR would also continue.