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BP 'set for Russian share deal'

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  • BP 'set for Russian share deal'

    BP 'set for Russian share deal'
    BP is set to announce a major deal with the state run energy giant Rosneft, according to BBC sources in Russia.

    The share swap deal could allow BP to drill for oil and gas in the untouched and totally unproven waters in the Russian part of the Arctic.

    BP new chief executive Bob Dudley is hosting a press conference later where details are expected.

    It could mean the Russian government owning a significant part of the UK's largest oil major.

    "Following recent press speculation, BP confirms that it is in discussions with Rosneft relating to a possible arrangement. A further announcement is to be made later today," said a BP spokesman.

    Such a deal would be the first significant deal the oil firm has done in the wake of the Deepwater Horizon spill crisis last year.

    Since that disaster in the US Gulf of Mexico BP has been disposing of assets.

    BP has also had significant problems with Russia in the past.

    Mr Dudley is the former chief executive of Russian joint venture TNK-BP, and was forced out of the country in 2008 after falling out with other shareholders.

    BP had a terrible 2010 with the Gulf of Mexico spill which is going to cost them at least $40bn.

    In November BP announced it was back in profit in the three months to September after last quarter' s record loss.

    The firm said its replacement cost profit for the period was $1.85bn (1.15bn), as against the $17bn loss recorded from April to June.

    The previous loss reflected the massive costs of the Gulf of Mexico oil spill crisis, which followed an explosion on a drilling rig in April