Stockholm Arbitration Tribunal does not let BP to Russia

The Stockholm Arbitration Tribunal has prohibited the British oil and gas giant BP to explore the Arctic shelf together with the Russian Rosneft company. This is a temporary restriction till the end of the investigation of a suit by TNK-BP shareholders who disagree with the transaction. However, experts are convinced that the scandal will in no way affect the prospects of foreign companies coming to the Russian market.

The Russian North is so far inaccessible for Brits. BP, which concluded an agreement with Rosneft on exchange of assets and joint exploration of deposits in the Russian part of the Arctic shelf, is to suspend the deal. This decision has been taken by the Stockholm Arbitration Tribunal. The verdict is not final until the claim of the Alfa Access Renova (AAR) consortium has been considered. That company owns half of the TNK-BP shares, the other half belongs to the British.  AAR affirms that there is an official agreement preventing BP from participating in projects on Russian territory without their partner’s approval. BP did not obtain such an approval of the deal with Rosneft. Konstantin Simonov,  the director of the National Energy Security Foundation, is convinced that the reason lies elsewhere.

BP and Rosneft have already had joint projects, for example, in Sakhalin. For some reason, AAR never wondered why no one asked for their permission. It is hard to believe that Russian TNK-BP shareholders did not know about the Rosneft-BP transaction in advance. Some experts thought that they were after money or wanted to go to the Arctic themselves. The last two weeks have demonstrated that AAR is not interested either in money or the Arctic. They are just aiming at the disruption of the deal.”

The deal between Rosneft and BP is one of the largest in the Russian oil and gas market over the last few years. The participants considered it to be of strategic significance. Prime Minister Vladimir Putin himself attended the ceremony of signing the agreement. Naturally, AAR’s suit has caused quite a stir, raising a lot of critical comments on Russia in the western press. Anyway, Konstantin Simonov is convinced that all attempts to stigmatize Russia’s image are doomed to failure. The authorities’ policy of attracting foreign investors testifies to the improvement of the business climate.

“This year, unexpectedly for experts who call Russia a cemetery for investments, foreign investors are crowding into Russia. BP has signed an agreement with Rosneft, and Rosneft with Exxon on the Black Sea. Gazprom has closed a deal with Wintershall on the South Stream plus Gazprom has handed over a part of the Urengoy gas field in Siberia to Wintershall. Total has bought a package from the Novatek gas company and is considering the prospect of entering the large Yamal SPG project on liquefied gas. It has been three months since the year began and there is already plenty of good news.”

Analysts suppose that AAR and BP will come to a consensus and the ban on the Rosneft deal will be lifted. It is possible that TNK-BP even enters the alliance of the exploration of the Arctic shelf.  In any case, this outcome will be beneficial to both parties of the conflict and to the whole of the oil and gas sector.

By Vesnovskaya Maria

The Voice of Russia, 25.03.2011