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Friday, May 6, 2011

BP Shares Jump On News Of Deal To Solve Russian Arctic Dispute

BP Shares Jump On News Of Deal To Solve Russian Arctic Dispute



May 6, 2011

BP Plc (NYSE:BP) said on Friday that an arbitration panel had issued a consent order permitting BP and the Alfa-Access-Renova (AAR) consortium to assign a disputed Arctic exploration opportunity to TNK-BP, a large Russian natural gas venture.

TNK-BP is Russians 3rd largest oil company, and is a 50/50 joint venture between BP and the AAR consortium.

AAR had gone to court to stop BP from entering into a deal with Rosneft, a Russian state-controlled firm, citing their existing contract with BP and their right of first refusal.

BP released a statement saying, "The order also permits the proposed share swap between BP and Rosneft to proceed subject to Rosneft having consented to assign the Arctic opportunity to TNK-BP."

The interim injunction preventing the firms from moving forward with their arctic exploration plans remains in place, pending Rosneft's consent to the deal.

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