On January 14, 2011 Rosneft and BP signed agreements to establish a joint venture to explore and develop the East-Prinovozemelsky 1-2-3 blocks on the Russian Arctic shelf, exchange 9.5% of Rosneft shares for a five percent stake in BP, and form a global strategic alliance between the companies. The term of the Rosneft-BP share swap agreement was set to expire on April 14, 2011.
Due to a corporate dispute between British and Cypriot shareholders of TNK-BP, which arose for reasons unrelated to Rosneft, and the Stockholm court blocking the transaction, Rosneft agreed to extend the term of the agreement with BP until May 16, 2011 to allow the parties to complete negotiations on closing the deal.
Negotiations between AAR and BP resulted in Rosneft receiving proposals going beyond the scope of the earlier agreements with BP. These proposals do not require an extension of the agreement beyond May 16, 2011 and make it possible to continue discussions on further cooperation beyond the framework of the expired agreements.
In evaluating these proposals, Rosneft will be guided first and foremost by the interests of its shareholders and the obligations arising from its licenses to develop the Arctic shelf, where the Company is pursuing vigorous work.
Rosneft will provide further information on its Arctic shelf development program in the near future.