BP and Russia's state-controlled Rosneft have agreed to jointly develop offshore oil fields in Russia and elsewhere in another sign governments remain happy to work with BP in spite of the Gulf of Mexico oil spill.
Prime minister Vladimir Putin said the Russian government supported the venture as he met BP chief executive Bob Dudley and Igor Sechin, Rosneft's chairman and deputy prime minister, at his Moscow residence.
"I know that your company and one of the Russia's oil and gas industry leaders, Rosneft, have reached serious agreements on jointly working on offshore projects in Russia and other countries," Mr Putin told Mr Dudley, a former head of BP's Russian joint venture, TNK-BP.
The US's worst-ever oil spill was blamed last week on bad management decisions, made largely by BP, in the drilling of a deepwater exploration well.
Fearing such a verdict, investors had fretted that governments might shun BP when inviting companies to help develop their resources.
Mr Dudley has said he sees no such trend and earlier this week BP said it had signed an agreement with state-controlled China National Offshore Oil Corp (Cnooc) to explore in block 43-11 in the South China Sea.
The tie-up with Rosneft could give BP access to new resources in Russia and could help Rosneft expand overseas -- something many state oil companies around the world are now seeking to do.
"We hope to work with Rosneft in the future to build something that is very significant and groundbreaking in the international oil and gas industry, not only in the Arctic but also in other places around the globe," Mr Dudley said.
Mr Putin provided no other details on the tie-up but added that Russian Arctic offshore oil resources earmarked for BP and Rosneft's joint development total some 5 billion tonnes, while the gas resources stand at 10 trillion cubic metres.
Russia wants to attract more foreign cash to help balance a budget deficit that stood at 1.79 trillion roubles ($59 billion) in 2010.
It hopes to sell off a range of state assets.
BP's 50-50 joint venture TNK-BP will acquire the British major's assets in Vietnam and Venezuela for $1.8 billion as part of BP's drive to raise funds after the Gulf of Mexico oil spill.
Reuters