Sechin says BP-Rosneft deal flop not personal failure

Russian Deputy Prime Minister Igor Sechin, who until recently chaired the board of directors of Russia’s oil company Rosneft, said on Wednesday he does not consider the failure of Rosneft-BP joint venture deal a personal failure.

In January, Rosneft and BP agreed on a share swap in which Rosneft was to exchange 9.5 percent of its stock for 5 percent in BP. The deal also included plans to jointly develop oil production in the Russian Arctic.

The deal was blocked by a court injunction following legal action by AAR, a consortium representing BP’s partners in local TNK-BP venture. AAR said BP had violated a BP-AAR shareholder agreement which obliged BP to ask for TNK-BP’s approval before BP could get involved in any Russian project.

The $16 billion deal between Rosneft and BP finally fell through on Tuesday after a deadline ran out for final agreement to swap shares and develop the Arctic shelf.

“You know, I have accumulated great experience, this work helped me have a closer look at all these processes, and to get new additional knowledge. I do not consider this a personal fiasco,” Sechin said.

PURPE (Russia, Yamalo-Nenets Autonomous Area), May 18 (RIA Novosti) 

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