Russia, BP form partnership

Jan. 15, 2011 at 9:55 AM
| License Photo

MOSCOW, Jan. 15 (UPI) -- A Russian energy company and oil giant BP are joining in a business deal to extract oil and gas from the arctic shelf, officials said.

Rosneft and BP's joint center on Arctic Technologies will have headquarters in St. Petersburg, Russia, RIA Novosti reported.

"The exploration of the (arctic) shelf will be definitely conducted in line with all norms of the environment protection," said Russia's Deputy Prime Minister Igor Sechin.

Russian officials estimated the recoverable gas and oil resources on the continental shelf at 100 billion tons.

As part of the deal, Rosneft will take 5 percent of BP's shares in exchange for about 9.5 percent of Rosneft's shares. It is BP's first deal since the Deepwater Horizon spill last year in the Gulf of Mexico, the BBC said.

"This unique agreement underlines our long-term, strategic and deepening links with the world's largest hydrocarbon-producing nation," said BP Chief Executive Officer Bob Dudley.

Related UPI Stories
Latest Headlines
Trending Stories
Ted Cruz campaign pulls ad featuring softcore porn actress
Report: Clinton Foundation subpoenaed by State Dept. watchdog over charity projects
Ruby Rose, Gigi Hadid react to Kanye West's lyric about Taylor Swift
Kristen Wiig impersonates Peyton Manning on 'The Tonight Show'
NYC police officer found guilty of manslaughter in Brooklyn stairway shooting