A collaboration deal between British oil giant BP and Russian counterpart Rosneft has failed after protracted negotiations.
The share deal had already hit the rocks in March when it was blocked by an arbitration panel following an injunction served by another of BP's Russian join ventures, TNK-BP. This was part-owned by Russian investment house, Alfa-Access-Renova (AAR) who objected to the Rosneft deal which would leave them out in the cold.
After the being given an extension to find a solution, all three parties put a brave face on the final outcome, with BP stating that despite trying to seek a "reasonable and businesslike solution", the status quo prevailed. However, it added that the company was looking forward to developing a range of projects with AAR and TNK-BP.
In return, AAR stated that its commitment to TNK-BP, one of the world's fastest growing oil companies, was for the long-term and that both companies saw significant benefits in continued negotation and collaboration with Rosneft.