Rosneft Pulls Out Of BP Deal

Russian state oil company Rosneft (ROSN.LN) is dropping out of its deal with BP PLC (BP.LN) because the Alpha Access Renova consortium has set conditions the company finds unacceptable, reports Tuesday citing a person close to Rosneft.

"Rosneft has taken a constructive position all this time. Evidence of this is the agreement to extend the deal timeframe, as well as its readiness to buy up the AAR stake together with BP at a premium price".

The company is ready to consider new partners for operations in the Arctic, the source said.

Rosneft was not previously engaged in principled negotiations with other international companies interested in the Arctic project because it was party to an agreement with BP, the source told AsiaEurope Business.

"When the validity of the agreement with BP ends, Rosneft will take a look at all the shelf-project proposals received earlier and map out a strategy for finding a partner for the Karsk Sea," he said.

BP declined to comment on the story and said they would put out their own statement shortly.