As marben has declared the BP crisis play thread closed, here is a new one...
To kick off, there will be a press conference at pm today on a BP / Rosneft share swap deal:
BP PLC (BP, BP.LN) is poised to unveil a share swap agreement with OAO Rosneft, the state-controlled Russian oil firm, according to people familiar with the matter, in a deal that will deepen the U.K. company's ties in Russia.
...
BP already owns a roughly 1% stake in Rosneft, and last year it struck a complex deal to effectively borrow against the stake when it was rushing to raise funds to help pay for the cost of the Gulf of Mexico oil spill.
For BP, which already has a significant joint venture in Russian known as TNK-BP, such a deal might give it greater access to Russia's vast resources of oil and gas.
For Rosneft, an agreement could be an opportunity to pick up BP's shares while they are still depressed in the aftermath of last year's Deepwater Horizon disaster in the Gulf of Mexico. Many analysts believe the company's shares remain undervalued as BP battles the massive cleanup and legal costs of the spill.
db
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Lots of fun watching the media speculate about the nature of this deal - wouldn't it set the cat amongst the pigeons if Rosneft were getting a chunk of BP USA assets* in exchange for BP getting into the Arctic?
That would be one in the eye for the politicians in the US who vilified BP in 2010 ;-)
*unlikely of course - given that the US politicians would be immediate in trying to block it. They might not be fans of BP - but Russia and/or the Chinese would be a different matter!
Signing the deal in front of the press - that is a first!
BP get 9.5% of Rosneft and are issuing £8bn of shares to Rosneft (giving them about 5%)....and they are setting up something jointly for the Arctic.
Funny to see them whispering as if the open mics can't pick them up!
Highly political and orchestrated press event - it has certainly got the press confused ;-)
Well, how unexpected?:)
Jan 14 (Reuters) - A high-ranking Democrat in the U.S. Congress on Friday called for a careful U.S. government review of a share swap between BP (BP.L) (BP.N) and Russian state-owned oil company Rosneft (ROSN.MM) to see if the deal could have an impact on U.S. national security.
"If this agreement affects the national and economic security of the United States then it should be immediately reviewed by the Committee on Foreign Investment in the United States. Additionally, the U.S. State Department should closely monitor this transaction," said Representative Edward Markey.
http://www.reuters.com/article/idUSN1419333920110114?feedType=RSS&feedName=marketsNews&rpc=43
Also would GOM form part of "other places", Obama?:
Sky News television reported Rosneft will take a stake in BP, probably around 5 percent, while a source familiar with the matter told Reuters the planned deal would involve the two companies jointly exploring for oil and gas in Russia and other places.
http://finance.yahoo.com/news/BP-says-in-talks-with-Russias-rb-3532591357.html?x=0&.v=5
How can Rosneft taking a 5% stake affect US national security for god's sake.
But it's a welcome deal, opening up more exposure to Russia.
Next stop a strategic share swap with one of the chinese majors :) here's hoping.
All that one needs is a resumption of divis post Feb results and we are off to the races imv.
Sitting happy on this one.
In reply to alano20, post #6
Markey apparently suggested (according to Bloomberg TV) that "BP used to stand for British Petroleum but now it seems to stand for Bolshoi Petroleum"..........a remark of such stunning ignorance that rather overlooks the fact that it is more American than either British or Russian in terms of the disposition of its assets (IIRC). A very convenient way to enable redneck voters to be able to grasp the global nuances of such things.... ;-)
Nice to see BP investing somewhere where it appears to be welcome......
ee
Bloody pig ignorant Yanks. Makes yóu want to scream really.
On Monday 17th January there will be a teleconference hosted by Bob Dudley, BP's Group Chief Executive to discuss the BP/Rosneft Global and Arctic Strategic Alliance.Please find attached the accompanying slides to which he may refer.
The call, followed by a question and answer session, will commence at 14:00 GMT / 09.00 EST and is expected to finish at approximately 14:45 GMT / 09.45 EST.
Audio Participants details:Conference ID: 37655356UK/ STD International Dial In: +44 (0) 1452 541 597USA Toll Free Dial In: +1877 334 3686Callers are advised to phone 10 minutes beforehand to ensure they are connected in time for the start. A recording of the session will be available for replay over the following 72 hours and will be accessible on the numbers below.
Replay Access Numbers: (available until 23/01/11)
Encore Replay Access Number: 17137731
International Dial in:
+44 (0)1452 550 000UK Local Dial in:
+44 (0)845 245 5205USA Free Call Dial In:
+1 866 247 4222
It does. Better to laugh instead: http://www.thedailymash.co.uk/news/international/palin-%27hit-with-dishonesty-bullets-from-.357-magnum-of-unfairness%27-201101133427/
Here we go, 4th Quarter results at BP
Resumption of dividends, at 7cents/sh, Replacement cost profit @ 4614m(4th Qtr 2010) leadimg to a full year replacement cost loss of $4.9bn
http://www.investegate.co.uk/article.aspx?id=201102010700104229A&fe=1
http://www.investegate.co.uk/article.aspx?id=201102010700174232A&fe=1
Some interesting comments in what I've read so far...
Interesting twist in the Rosneft deal with an injunction being granted this afternoon:
Extract:
It's so frustrating dealing with Russians... one step forward, two steps back. Wonder how they are going to get the Oligarchs to play ball...
Will continue to hold myself and will revisit either on hitting 550p or another disaster.
In reply to Fangorn, post #14
The really interesting bit is seeing the TNK guys thinking that they can take on the Russian state and win (Rosneft is state controlled). Donst they remember what happened to Khodorkovsky?
Methinks they've short term memories, that, or they think they're untouchable.
With Putin on board(Rosneft deal), I'm sure this will get sorted to BP's satisfaction.
This has been one of my better trades over the last 12 months,in no hurry to close out. I would've closed if the divi hadn't materialised. Makes up for my unlucky play with QED. Now, if only Aminex would get a move on......
In reply to emptyend, post #8
Markey apparently suggested (according to Bloomberg TV) that "BP used to stand for British Petroleum but now it seems to stand for Bolshoi Petroleum"..........a remark of such stunning ignorance that rather overlooks the fact that it is more American than either British or Russian in terms of the disposition of its assets (IIRC). A very convenient way to enable redneck voters to be able to grasp the global nuances of such things.... ;-)
O/T but Edward Markey is a Democrat representing the "nothing-like-redneck", famously oil-free 7th district of Massachusetts - couldn't agree with you more that Democrats from Massachusetts are capable of 'stunning ignorance' but please don't tar rednecks with the same brush, I'm sure they actually appreciate BP's jobs more than the Democrats' empty rhetoric and drilling moratoria.
Another interesting move by BP - taking a 30% stake in Indian gas blocks.
http://www.investegate.co.uk/InvArticle.aspx?id=190178
Energy major BP plc is to pay $7.2bn for a 30% stake in 23 oil and gas blocks operated by India's Reliance Industries Limited.
There's certainly plenty of ongoing interesting activity it seems.
And following on from the Indian venture, BP has just announced:
Darron,
you beat me to it - I've just e-mailed you the press release !
An interesting package - though with two distinct components, Wytch Farm and the Southern North Sea gas fields. I wonder whether we will see potential acquisitors aiming for one of them, rather than both.
The gas fields? Well, a few potential players? Centrica? Perhaps Abu Dhabi's TAQA?
Wytch Farm - still by far the largest UK onshore producer, IIRC. Too big, I would think, for any of the small onshore operators, but a good opportunity for any company seeking to enter into the UK onshore with a bang. Presumably a non-British firm?
In reply to ManSiarad, post #20
HI MS
Thanks for that - havent yet had the email (I imagine that e comms out there may be somewhat slow at the moment!!) Anyway, Ive had the BP version and theres a little more meat on the bones to the newswire report I saw:
As for likely bidders, CNA possible for the gas assets but Id put Taqa and KNOC in the lead position.
Quite impressed with the way that BP is playing out much as I said back last year - turning itself into a super giant explorer - Russia, India - and realising great prices for mature assets.
Darron
http://www.thisismoney.co.uk/markets/article.html?in_article_id=529355
US regulators have agreed to let BP resume work on 10 wells that were shut down during a six-month moratorium on drilling in the Gulf.
Permission to revisit the scene of last year's disaster is expected to be a prelude to BP getting the green light to start new drilling projects towards the end of the year.
and in other news....
Arco Alumimium sold for $680m to Japanese Consortium.
http://www.investegate.co.uk/article.aspx?id=201104040700132105E&fe=1
Still very long myself.And continuing to hold. BP still significantly undervalued in my view despite the ongoign Russian issue amongst other things.
http://www.investmentweek.co.uk/investment-week/news/2039720/rising-stars-clash-woodford-bp?WT.rss_f=&WT.rss_a=Rising+stars+clash+with+Woodford+on+BP
Rising stars clash with Woodford on BP
04 Apr 2011 | 08:23