Rosneft holds the door open for further co-operation talks with BP

Rosneft and BP failed on Monday to agree with the partners in BP’s Russian venture TNK-BP on a $32bn (£19bn) buyout of their 50 per cent stake in the company held through the AAR consortium.

A buyout would have unblocked the deal struck in January between BP and Rosneft to conduct a $16bn share swap and Arctic exploration deal, whose deadline expired on Monday night.

“As a result of the negotiating process between BP and AAR, Rosneft has received proposals which go beyond the previous agreements and do not require the extension of the deadline (for the share swap) which expired on May 16, 2011,” Rosneft said in a statement.

“These proposals make it possible to discuss our further co-operation outside the agreements which have already expired.”

The statement, the first official comment from Rosneft on the collapse of talks, leaves the door open to finding a new way to close the deal.

Rosneft added it would announce its own plans to develop the Arctic Kara Sea blocks it had planned to develop with BP.

“Considering these proposals, Rosneft will above all be guided by the need to respect the interests of its shareholders and the necessity of fulfilling its licensing agreements on the Arctic shelf, where the company is continuing active work.”

On Monday BP said it was still hopeful a deal could be struck, adding it would intensify its efforts to ensure TNK-BP’s continued success.

“In recent months, BP has conducted detailed negotiations with AAR and Rosneft to seek a reasonable and businesslike solution that would allow the agreements to proceed to the satisfaction of all parties.

“Such a solution has not been found at this time, although talks will continue,” it said in a statement.

BP chief executive Bob Dudley said: “BP remains committed to Russia, to working constructively with AAR in TNK-BP and to our existing good relationship with Rosneft.”