Tag: BP

BP reported a significant drop in the costs related to last year’s devastating Gulf of Mexico oil disaster in the first quarter as the UK oil group sought to rebuild its oil and gas exploration operations.

The company, which last week launched legal claims against three companies involved with the Deepwater Horizon drilling rig which blew up killing 11 men, said non-operating costs related to the Gulf of Mexico disaster were $384m in the three-month period to the end of March compared to more than $1bn in the fourth quarter. The total charge last year was $40.9bn.

Kiran Stacey

The first BP AGM since the oil spill, and the first one with Bob Dudley at the helm, has come to a close. With the various disputes and controversies surrounding the company at the moment, did Mr Dudley come out of it with his reputation enhanced? And what about the other parties represented? Here is our take:

Kiran Stacey

Protestors outside the BP AGMAs we near the end of BP’s AGM, one thing we can report is that Bob Dudley is still standing. Which is more than can be said of several protesters against the development of Canadian oil sands who were carted out, in some cases lifted off their feet, after shouting across Mr Dudley as he tried to defend such developments.

It has not been an easy ride for Mr Dudley in his first AGM as CEO, nor for the chairman Carl-Henric Svanberg. Several representatives of Gulf of Mexico communities were banned and if the company thought barring such people would limit criticism on this front they were wrong. One of the toughest moments for the board came when one woman read out a testimony excoriating the company from the father of Gordon Jones, one of the rig workers who was killed almost a year ago today.

Bob Dudley, BP chief executive, and Vladmir Putin, Russian prime minister, when the BP-Rosneft deal was announced in January 2011

By Stefan Wagstyl and Catherine Belton

Rosneft’s decision on Wednesday to give BP another month to try to complete their controversial cooperation plan gives everybody involved a breathing space.

But such is the acrimony between BP, its existing Russian partners led by oligarch Mikhail Fridman, and warring Kremlin clans,  that it’s unclear a deal can be done. Perhaps it can be completed only when the Moscow political temperature subsides after next year’s presidential election.

Kiran Stacey

Thursday morning sees Bob Dudley’s first AGM as BP chief executive, and it is not the one he would have planned.

After taking charge last year in the wake of the Gulf of Mexico spill, the new BP CEO initially won plaudits for his plan to overhaul the company’s safety procedures.

Then came his big eye-catching move, the deal that could seal his reputation as CEO. His plan for a $16bn share swap with Rosneft would open up the Russian arctic for exploration and provide an source of revenues that could rival the North Sea.

BP’s talks on buying out its Russian billionaire partners in TNK-BP broke down on Wednesday morning on the eve of a deadline to complete a $16bn share swap with Rosneft.

People close to the discussions said BP and Rosneft had ended talks with Alfa-Access-Renova because the Russian billionaire partners made “unrealistic” demands for a buyout of their 50 per cent stake in TNK-BP, BP’s existing Russian oil venture, which would have been detrimental to the interests of BP shareholders.

President Dmitry Medvedev speaks with Vice Premier Igor SechinBy Catherine Belton and Stefan Wagstyl

At first glance, Igor Sechin’s abrupt departure as Rosneft chairman appears to bode badly for BP’s last-ditch bid to salvage its alliance with the Russian state controlled company.

But, it could turn out to be a clever tactical move that might yet save the deal. So complex are the political tensions surrounding the deal that the outcome remains impossible to predict. In other words, BP is still in with a chance.

FT Energy Source

Bob Dudley, BP chief executive, and Vladmir Putin, Russian prime minister, when the BP-Rosneft deal was announced in January 2011BP is running out of options. Its plans for a cooperation pact with Russia’s Rosneft was on Friday blocked for a second time by a legal challenge from its Russian partners in its existing Russian joint venture, TNK-BP.

While the international tribunal has still to give a definitive ruling on a key element of the accord – a $16bn share swap – its temporary injunctions could now have a permanent effect on BP’s ability to close the deal. The Russian TNK-BP partners headed by oligarch Mikhail Fridman are winning in their effort to block the ambitious venture.

As beyondbrics has reported, the Stockholm tribunal – which is actually three Brits meeting in London – ruled on Friday that a temporary injunction blocking the share swap should remain in place.

BP failed on Friday to secure legal permission to go ahead with its proposed share deal with Rosneft, the Russian state-controlled oil group, after the Russian partners in its existing Russian venture TNK-BP opposed the plan.

The arbitration court, which had earlier blocked a proposed BP-Rosneft venture for Arctic exploration, on Friday ruled that the second element in the overall agreement – the share swap – could not go ahead on its own for now, under the terms of a temporary unjuction.

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