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BP settles with Russian TNK-BP partners

16 November 2012

BP has agreed to pay its partners in the TNK-BP joint venture $325 million as part of a wide-ranging settlement deal announced earlier on November 12, Dow Jones said, quoting “a person familiar with the matter”.

The UK oil major and the group of Soviet-born billionaires behind the Alfa Access Renova consortium have come to a "comprehensive agreement" to settle all disputes between them, including protracted arbitrations brought by each side against the other. BP and AAR both declined to comment on whether any payments were made in respect of the settlement.

The settlement ends years of tensions between the partners and paves the way for a multi-billion-dollar buyout of both sets of shareholders by Russian state-owned behemoth OAO Rosneft. BP and AAR had been mired in litigation since last January, when AAR blocked BP's proposed deal with Rosneft to develop Arctic oil and gas fields.




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