BP and Russia sign Arctic oil deal

[Dover]

Source: Al Jazeera

Concern from environmentalists and US politicians as UK firm agrees to explore area with state-run energy giant Rosneft.


BP has signed a joint venture with Russia's state-controlled energy giant Rosneft to explore for offshore oil and gas and in a deal that gives the UK company access to areas of the Arctic previously reserved for Russian companies.

The British energy giant will swap five per cent of its shares, valued at $7.8bn, for 9.5 per cent of Rosneft in an agreement that immediately raised concerns about US economic security from US politicians and criticism from environmentalists.

The deal covers huge areas of the South Kara Sea in the Arctic that BP, which is still recovering from the financial impact of the Gulf of Mexico oil spill, said could contain billions of barrels of oil and gas.

..snip..

Following the Gulf of Mexico disaster which has put BP under pressure in the US, Reed said that by signing a deal with Russia the company was "hedging their bets" and that the deal "shows how resilient and, quite frankly, creative they are."...cont'd



Read more: http://english.aljazeera.net/news/europe/2011/01/201111513522382747.html

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Relentless...

[Edweird]

1. BP and Russia - what could possibly go wrong?

[Dover]

2. BP thinks it's brilliant because it's a private international/national resources partnership.

The U.S. based energy companies already accomplished that 'in-house' by simply taking over our national government (a hostile takeover at that). I'm sure they feel it's much more efficient.

[social_critic]

3. What could go wrong?

I guess they could have an oil spill? But the area where they intend to explore is known for its giant gas/condensate resources. Which means the condensate properties will be the key. Global warming will help them, in 10 years the ice may be less of a hassle, and the ice breaking tankers will be able to ship to Rotterdam direct.

[Lars77]

4. American hostility grows over BP's deal with Russian state oil company

Source: The Guardian

Britain's leading oil company, BP, is facing hostility and suspicion from the US over an alliance with the Russian state oil firm Rosneft that opens up vast areas of untapped wilderness off the coast of Siberia and beneath the Arctic shelf.

Endorsed by both countries' prime ministers, David Cameron and Vladimir Putin, the tie-up gives Rosneft a 5% stake in BP, while the London-based company will increase its stake in the Russian firm from 1.3% to 10.8%. It will give the Kremlin a slice of ownership of BP's global operations, which stretch from Alaska to the Gulf of Mexico, north Africa, Azerbaijan and the North Sea.

BP's chief executive, Bob Dudley, hailed the arrangement, signed on Friday night, as a "historic moment for Rosneft, the BP and for the global energy industry generally", and described it as a "new template" for the way international oil exploration can take place. Russia's deputy prime minister, Igor Sechin, who chairs Rosneft, suggested that among BP's attractions were "knowledge and experience" accrued from last year's disastrous Deepwater Horizon oil spill in the Gulf of Mexico.

Read more: http://www.guardian.co.uk/business/2011/jan/16/american-hostility-bp-deal-russia

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Yeah, it must suck when your business partners in global domination finds a new business partner for global domination.

[onethatcares]

5. well this ought to be good

I'm recalling a disaster a while back on the Russian homeland. They did a bang up job cleaning that one. Cherynobel or something like that,wasn't it?

Imagine how quickly the response time will be if a well blows out under the Artic Sea and there's a large layer of ice atop it.

All in all though, the energy companies are all tied together in the name of globalization of the "energy industry generally".

[Mimosa]

6. Do most U.S. citizens even know what BP is up to?

The BP Gulf catastrophe has been forgotten by the majority.

[molly77]

13. I haven't forgotten. And pray for the healing of the Gulf of Mexico.

[lonestarnot]

15. NOT ME!

[Cal Carpenter]

7. Oh no, capitalism is doing what it's supposed to do

Expanding it's reach and consolidating corporations and wealth. What a surprise.

:eyes:

[Downwinder]

8. And leaving a lot of destruction in its wake.

[Cal Carpenter]

10. Well yes, that's all just collateral damage you see

It just hits me so wrong when greedy, opportunistic capitalists get pissed that other capitalists are greedy and opportunistic while it is all **AUSTERITY**(tm) for the rest of us on this planet.

[Downwinder]

17. It has been AUSTERITY for me for the last 30 years.

[Cal Carpenter]

18. You are not alone

While 'austerity' has become a buzzword lately the truth is that it is just more of the same. Poor, working class and so-called middle class people bearing the brunt of the decisions made by those with money and power, all over the world. All the while CEOs and major shareholders and politicians are riding high.

A lot more Americans are feeling it now compared to the last few decades, and we can no longer 'hide' the 'hidden poor, but you are absolutely right to point out that a lot of people have been struggling for a long time.

[xchrom]

9. Recommend - so nice that they're angry - sounds...

Righteous and all that.

They won't do anything - but it sounds good.

[Vinca]

11. Maybe Joe Barton's apology wasn't sincere enough.

:cry:

[RUMMYisFROSTED]

14. :D

[dipsydoodle]

12. Bolshoi Petroleum

How droll. I can only assume your congressmen and sentators have been asleep for some extended period of time. I wonder who kissed them to wake them up.

BP has had tie ups / jv's with Russia for year and years, TKN-BP , which the article mentions. It was TKN who forced Dudley to flee the country only to be replaced in effect by Tony Hayward last October.

edit to add - droll as in a failed attempt at humour.

[DemoTex]

16. BP is moving on to more pristine environs ..

Now that they have shit our nest.

[social_critic]

19. It is Russian territory, isn't it?

I think it's amusing, BP is just signing a deal to look for oil and gas in Russian waters. The place is thousands of miles from the US, so what's the big deal? I don't see the Russians getting upset when a British company invests in the US. What's with the globocop imperial mindset, you guys can't let other nations act without your approval?