BP join forces with Russian energy firm Rosneft.
The alliance has been forged over 12 years and the companies are now keen to get to work exploring the vast region of Russia’s Arctic Shelf. The deal will see the two combine their expertise and the profits as Rosneft now owns five per cent of BP shares which it acquired by giving the later 9.5 per cent shares in Rosneft.
This historic deal is BP’s first since the Deepwater Horizon spill which devastated the Gulf of Mexico in April and cost the oil giant billions of dollars.
BP Chief executive Bob Dudley is positive about the move the company is calling the first bit of seriously good news since the crisis.
It might be good news from a business point of view but the partnership is turning into a public relations nightmare. Americans are still furious with BP and see the strategy as an insult and environmental activists are against any exploration in the Arctic region in question, some 125,000 square kilometres in size.
Another bone of contention in this case is the fact that Rosneft is 75 per cent owned by the Russian government and is seen as a potentially unstable bedfellow for BP, who are accused of handing Russia a five per cent stake in a company with vital oil reserves the world over.
Rosneft and BP have revealed their plans to establish an Arctic technology centre in Russia where they will work alongside international research institutes to create and improve the technology and methods used when extracting Hydrocarbon resources in the Arctic shelf.
BP has strongly denied allegations that their links with Russia have not been formed as the result of the hostility still felt for the organisation in America.