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

May 06, 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 5050 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.