The Russian government-owned oil company Rosneft is to take a 5 per cent stake in BP, after agreeing a deal to explore new sites in the Russian Artic.
Rosneft and BP have agreed to explore and develop three license blocks on the Russian Arctic continental shelf, covering 125,000 sq km in the South Kara Sea.
Under the terms of the agreement BP will hold a 9.5 per cent stake in the Russian oil company, the stake Roseneft will hold in BP has been valued at $7.8 billion.
Bob Dudley, chief executive of BP, said, the Russian Artic was ‘one of the world’s last remaining unexplored basins’.
He said, ‘This unique agreement underlines our long-term, strategic and deepening links with the world’s largest hydrocarbon-producing nation.’