BP's Rosneft Deal is Blocked by Russian Tribunal Risking Costly Resolution

Filed under: Russia, BP p.l.c. ADS (BP)

BP (BP) should have seen this one coming. An arbitration tribunal set up by BP's existing Russian partners blocked the $7.8 billion share swap deal proposed by BP with Russia's state-controlled Rosneft. The tribunal was setup at the behest of the Alfa-Access-Renova consortium, which is BP's partners Russia's third-biggest oil producer TNK-BP. BP is the third largest of the six oil & gas 'supermajors' after Exxon Mobil(XOM) and Royal Dutch Shell. Other competitors include Chesapeake(CHK), Anadarko and Chevron (CVX).

Our price estimate for BP stands at $49.38, implying a roughly 5% premium to its current market price.

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BP's Rosneft Deal is Blocked by Russian Tribunal Risking Costly Resolution originally appeared on BloggingStocks on Thu, 31 Mar 2011 17:30:00 EST. Please see our terms for use of feeds.

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