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Russian oil giant signs key deal with BP

0 CommentsPrint E-mail CNTV, January 27, 2011
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As Russian President Dmitry Medvedev was addressing the Davos World Economic Forum, one of Russia's main oil companies was signing a key share swap deal.

 

Oil giant Rosneft has formalised a 16 billion US dollar deal with BP, a company trying to rebuild its image after last year's oil spill in the Gulf of Mexico.

BP's Chairman Bob Dudley and Rosneft's President Eduard Khudainatov signed the paperwork.

Bob Dudley, BP's Chairman, said, "It's an historic development for BP for Russia, for our development and I believe the wider world of global energy. We are building on a relationship between BP and Rosneft that has been forged over 20 years with Russia. We are now going far beyond anything that has gone before creating a entirely new strategic alliance between what I think are two great companies."

Eduard Khudainatov, Rosneft's President, said, "This proves that we are confident in each other and this gives us confidence longterm looking forward, for the benefit of our companies and our countries."

The two companies have also agreed to expand their landmark share-swap and Arctic development deal and work together in other counties.

Bob Dudley, BP's Chairman, said, "For Rosneft and Russia it offers a broad range of opportunities not only in the development of resources in the Arctic but extending the European refining and further global upstream co-operation between our companies. For BP this is a key step in our strategy to seek and work in some of the world's leading hydro-carbon basins."

BP is trying to rebuild its image after last year's oil spill in the Gulf of Mexico.

But some analysts say signing a deal with a Russian state-run oil company comes with its own risks.

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