Russia: Rosneft Accepts BP’s Proposal To Extend Deadline Swap Deal
BP has asked Rosneft to extend the deadline for the share swap agreement, pending the final decision of the Arbitration Institute of the Stockholm Chamber of Commerce, and in order to implement the share swap transaction between Rosneft and BP.
Without waiving any of its rights, the Russian oil company decided to meet BP’s request and extend the agreement’s deadline by one month.
In so doing, Rosneft’s President Eduard Khudaynatov stressed that “the Company continues to implement the strategically important projects related to the development of the Russian Arctic off-shore.”
“We hope to see the dispute over the Russian Arctic offshore projects between TNK-BP’s Russian and British shareholders soon resolved in the international tribunals”, he said.
The share swap agreement, between BP and Rosneft, together with the related Arctic Opportunity, were originally announced on 14 January 2011. Both the share swap agreement and the Arctic Opportunity remain subject to an interim injunction.
BP said it intends to continue with the arbitration process to obtain a final award on all outstanding issues, including whether or not the interim injunction should continue.
BP added that it remains fully committed to TNK-BP as its primary business vehicle in Russia and fully supports its strategy and investment programme, which should ensure its success for decades to come. BP also owns a 1.3% interest in Rosneft and has been exploring offshore Sakhalin for over a decade and engaging in Arctic studies.
The arbitral tribunal was convened to resolve issues raised by Alfa Petroleum Holdings Limited and OGIP Ventures Limited relating to the share swap agreement and Arctic Opportunity arrangements agreed between BP and Rosneft and to clarify BP’s obligations under the TNK-BP shareholders’ agreement.
Rosneft is Russia’s leading oil producing company. It produces some 2.4 million barrels of oil equivalent (boe) per day, and has reserves of 15.146 billion boe. It produces oil in all key regions of Russia. Rosneft reported (pre tax) profits for the year end 31 December 2009 of $8,519m and gross assets (as at 30 September 2010) of $87,984m.