Arctic Trove Back on Market after BP Defeat

17 May 2011 (Last Updated May 17th, 2011 18:30)

UK oil giant BP has lost its bid for a $7.8bn share swap with Russia's Ronseft, opening up the chance for other countries to access lucrative oil reserves in the Russian Arctic. Companies such as Royal Dutch Shell, ExxonMobil and Chevron could now back the chance to unlock as much as 15

UK oil giant BP has lost its bid for a $7.8bn share swap with Russia’s Ronseft, opening up the chance for other countries to access lucrative oil reserves in the Russian Arctic.

Companies such as Royal Dutch Shell, ExxonMobil and Chevron could now back the chance to unlock as much as 15 billion barrels of oil, equal to more than five years of US crude production, reports Bloomberg.

AAR, which owns half of Russian joint venture TNK-BP, blocked BP’s proposed share swap with Rosneft after the deal expired yesterday.

But BP and Alfa-Access-Renova insisted that they would intensify their efforts to ensure TNK-BP’s continued success following the lapse of the transaction.

“BP remains committed to Russia, to working constructively with AAR in TNK-BP and to our existing good relationship with Rosneft,” said BP group chief executive Bob Dudley. “All parties have worked hard to reach an acceptable resolution, as we believe it could offer significant benefits to BP shareholders, to Rosneft, AAR and Russia.”