BP’s Arctic Deal Falls Through
Just over a year after the Gulf Oil Spill, BP's attempts to move forward have been dealt a major setback. The company had announced a $16 billion share swap with the Russian Rosneft back in January. The Associated Press reports the deal would have given BP a huge presence in the Arctic, enabling the company to shift a major focus away from the U.S., where the company's reputation remains badly tarnished. The deal has fallen through, leaving CEO Bob Dudley with egg on his face and analysts with raised eyebrows.
BP's Arctic Deal Falls Through (AP via Yahoo)
'This was a rehab deal to show that BP was still a player, could still do the big deals on the world stage The fact that it was potentially a good deal, but they didn't stitch this up first of all and get a binding pre-agreement from their Russian partners really does call into question quite a lot about this deal and the way that BP is being managed.' - Oil Industry Analyst Nick Mc Gregor