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Europe: Rosneft not interested in TNK-BP role in planned alliance with BP

https://www.chemnet.com   Mar 14,2011 Platts
Russia's biggest oil producer Rosneft Friday released an official statement to confirm its position that the state-run company is not interested in cooperation with Anlgo-Russian joint venture TNK-BP within a recently announced strategic alliance with BP.

"While choosing a strategic partner, Rosneft took into account BP's 40-year experience in [hydrocarbons] production offshore and deepwater work in 12 countries as well its capacity to carry out capital-intensive and high-technology projects," Rosneft said in a statement.

"Rosneft stresses again that it has never conducted any negotiations and is not in talks now with [the consortium of the Russian shareholders in TNK-BP] AAR or TNK-BP regarding a [possible] change of the partner," Rosneft said.

"TNK-BP has never been considered as a possible party in the alliance as it has no relevant experience [in offshore production]," Rosneft said.

The statement came as TNK-BP board of directors is to meet Saturday to consider its possible participation in the deal instead of BP.

In mid-January, BP and Rosneft announced a major deal, which includes a $16 billion share swap and joint exploration of three blocks in the Russian Arctic.

But following legal actions in London by the Russian shareholders in the 50:50 joint venture TNK-BP -- the Alfa-Access-Renova (AAR) consortium that represents a group of Russian oligarchs -- the deal was temporarily blocked until the parties resolve the dispute through arbitration. The arbitration began Tuesday.

AAR has argued that the deal with Rosneft contravened a shareholders agreement stipulating that any deals BP enters into in Russia should first be offered to TNK-BP.

On Saturday, TNK-BP's board of directors is expected to vote on the management's proposal to buy a 5% stake in BP to be used in the further share swap with Rosneft, effectively replacing the British company in the share swap deal.

The board was expected to vote on this proposal on March 4 but the move was postponed until Saturday as BP representatives on the board asked for more time to consider the proposal.

SHAREHOLDERS DISPUTE

Rosneft Friday stated it would not to intervene into the dispute between the TNK-BP shareholders and hope that "this corporate conflict will be resolved shortly and cause no damage to Rosneft interests."

But it said that the company would undertake "comprehensive measures to defend interests of its shareholders, with all ensuing consequences."

In late February, chairman of Rosneft's board Igor Sechin, who is also Russia's Deputy Prime Minister, told the Wall Street Journal that Rosneft might seek compensation from BP or TNK-BP if the planned mega deal with BP on a strategic partnership is canceled.

Sechin has also said that AAR's position over the Rosneft-BP alliance came as a surprise for Russia's authorities, who blessed the deal. Sechin then said he had met with TNK-BP executive director, who is also one of AAR key shareholders, German Khan to inform him about the planned partnership with BP before signing the deal.

Rosneft Friday pointed that the Russian company and BP have already had more than 10-year "successful" cooperation experience offshore Sakhalin Island in Russia's Far East. Notably, this cooperation in Sakhalin 4 and Sakhalin 5 projects has been out of the framework of TNK-BP shareholders agreement, it added.

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