BP’s Agreement With Russia’s Rosneft

The Gulf Oil Spill and BP Petroleum forced both the United States and England’s largest corporation to deal with an oil spill disaster. What is known about BP is that it operates by selling its oil derivatives under two internationally known names, BP and AMOCO. The products made by these oil giants are sold internationally to wholesalers and to retailers. The current price of BP in the US market is $47.

The two brands are sold internationally to both wholesale and retail outlets. The price per share of BP currently is $47. The stock is looked upon as a BUY with potential of tripling in the near future. One of the causes for the BUY on BP is the agreement that BP has made with a Russian oil producer, the largest oil producer in all of Russia, Rosneft. The agreement is the first of its kind in the world and is seen as a unique global union of two national concerns working internationally in oil exploration.

BP and the Russian oil concern Rosneft have agreed to look for oil in the Russian Arctic continental shelf. Permission was given to Rosneft to explore 125,000 kilometers of area in the South Kara Sea in 2010. According to BP assumptions, the area has as much potential and is equal to the United Kingdom’s North Sea. The partnership between Rosneft and BP is a historical one as it is the first of its kind between a national oil company and an international oil company.

In actual stock numbers, BP will give Rosneft 5% of its voting shares of stock and Rosneft will give BP 9.5% of its stocks. BP will help to build a center in Russia to conduct Arctic exploration technologies to safely mine hydrocarbons found on the Arctic shelf.

Bob Dudley of BP looks forward to a prosperous and mutually rewarding partnership with its new partner in making energy research and management a global environmental and financial success. Don’t look for BP to stop here. They have already targeted an agreement in India.

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