facebook
twitter
search
search

AAR, BP bury hatchet over TNK-BP

Nov. 14, 2012 at 7:11 AM

LONDON, Nov. 14 (UPI) -- Shareholders in joint Russian oil venture TNK-BP confirmed they reached an agreement to settle outstanding issues to avoid arbitration.

"BP and AAR, joint shareholders in TNK-BP, today announced that they have reached a comprehensive agreement to settle all outstanding disputes between them, including the current arbitrations brought by each against the other," a statement released by BP read.

Russia's state-owned oil company Rosneft agreed recently to take on BP's stake in the joint venture for $17.1 billion in cash and 12.84 percent of treasury shares. Rosneft, in a deal with Russian billionaires represented by AAR, agreed to take on the other half of TNK-BP in a deal worth $28 billion.

The sides in the joint venture have been at odds over the direction of the Anglo-Russian entity. The two parties, the statement read, are free to work with Rosneft and pursue other opportunities.

In July, a Russian court ordered the British company to pay TNK-BP more than $3 billion for a failed 2011 proposal with Rosneft for work in the arctic. TNK-BP had said that deal violated the terms of the shareholder agreement with BP.

"The agreement includes an immediate waiver of the new opportunities provision in the TNK-BP shareholder agreement, allowing each party to explore new opportunities and partnerships in Russia and the Ukraine, effective immediately," the statement read.

Like Us on Facebook for more stories from UPI.com  
Related UPI Stories
Latest Headlines
Top Stories
Compact cannon for British armored vehicles
Volvo unveils new child seat concept
JetBlue first major airline to offer direct New York to Cuba flights
New Zealand military receives medium heavy military trucks
BBC to lay off 1,000 people to make up for $234M in lost revenue