BP and Rosneft in exploration pact

File photo dated 03/04/07 of a general view of a BP garage sign in Hampton Court, Surrey. BP is expected to post a mammoth 7.6 billion US dollars (£3.6 billion) in second-quarter profits today as the corporate giant is buoyed by surging oil prices.

Beyond BP: company in possible share swap with Rosneft

Stephen Kelly

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By News Wires

 14 January 2011 20:01 GMT

BP and Russia's state-controlled Rosneft have agreed to a share swap under which they would jointly explore for offshore oil and gas.



The deal immediately raised concerns in the United States about Russia's global oil ambitions.

BP, recovering from its Gulf of Mexico oil spill, said today it will swap 5% of its shares, valued at $7.8 billion, for 9.5% of Rosneft, Reuters reported.

BP and Rosneft plan to drill in the Kara Sea in the Arctic circle off Russia’s North Coast, Bloomberg reported.

In October, Rosneft received the rights to develop three Kara Sea blocks, known as East Prinovozemelsk-1, 2 and 3, according to the government website.

The deal, which is expected to be…

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