Arbitration tribunal ratifies block on BP-Rosneft joint Arctic venture

Arbitration tribunal ratifies block on BP-Rosneft joint Arctic venture

2011-03-25 06:47:19 GMT+7 (ICT)

LONDON (BNO NEWS) -- A Swedish arbitration tribunal in London on Thursday ruled that the interim injunction issued to prevent BP's proposed transaction with Rosneft from proceeding will continue.

The ruling included both the Arctic exploration venture and a share swap transaction. The injunction was first issued in February by the High Court of Justice in London in response to a demand by the TNK-BP shareholders.

The demand was issued by ARR referring to the shareholders' agreement between BP and TNK and contemplating the legality of BP's entering into the agreements with Rosneft.

After Thursday's ruling, BP announced that it will apply or a determination whether the share swap may proceed on its own and reassured its intentions to find a way to solve the conflict with its TNK Russian shareholders.

Furthermore, BP informed that it intends to continue honoring the TNK-BP shareholders' agreement to which it is a party with AAR, and to respect the decision of the arbitrators.

However, the London-based company regretted that the agreements with Rosneft, which are important to Russia, cannot go ahead in the form intended and established in January. Previously, Rosneft informed that it will undertake all measures to defend the rights of its shareholders despite the consequences.

On January 15, BP and the state-run energy giant Rosneft signed a joint venture to explore and develop three license blocks on the Russian Arctic continental shelf and establishing an Arctic technology center.

TNK-BP is BP's primary business vehicle in Russia. Rosneft and BP have more than a decade of successful cooperation with its exploration program on the Sakhalin shelf.

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