BP, Russia's Rosneft In $7.8B Share Swap Deal

By Houston Business Journal

BP Plc and Rosneft, Russiaâ¿¿s state-controlled oil company, have reached agreement on a share swap that paves the way for joint exploration for oil and gas, according to news reports.

A Reuters report said the deal struck Friday raised U.S. concerns about Russiaâ¿¿s oil ambitions.

The London-based oil giant said it would exchange 5 percent of its shares, valued at $7.8 billion, for 9.5 percent of Rosneft.

Reuters reported that the deal, expected to be completed in a few weeks, signals an abrupt thawing in relations with Moscow both for BP and U.S.-born CEO Bob Dudley, who was installed as the companyâ¿¿s top executive in the wake of the Deepwater Horizon Gulf rig disaster.

Click here to read the Reuters report.

Copyright 2011 American City Business Journals

http://www.bizjournals.com/houston/news/2011/01/14/bp-russias-rosneft-in-78b-share.html?ana=thestreet

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