TNK-BP, BP Plc (BP/)’s Russian oil venture, sees the collapse of the U.K. company’s Arctic exploration deal with state-run OAO Rosneft as the “least interesting outcome,” said Alexander Shokhin, an independent director on TNK-BP’s board.
TNK-BP, equally owned by BP and a Russian group of billionaires, wants an opportunity to expand into the Arctic offshore, Shokhin said today in an interview in Moscow. TNK-BP has little chance of developing such a project on its own because it lacks the technology, he said.
The billionaire partners have held up BP’s plan to swap 5 percent of its stock for about 9.5 percent in Rosneft and to explore for resources in the Kara Sea, claiming TNK-BP has exclusive rights to pursue opportunities in Russia for BP.
BP asked arbitrators to allow it to carry out the share swap on its own, and Rosneft extended the deadline by a month to May 16.
TNK-BP wants to either join the alliance or seek as much as $10 billion in compensation from BP, Shokhin said. No resolution to the dispute has been found yet, he said.
AAR rejected a $27 billion buyout offer from BP last week, a person with knowledge of the proposal said at the time.
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