TNK-BP Rejects Offer To Join BP/Rosneft Alliance

TNK-BP, BP's BP joint venture with Russian investors, has rejected an offer by Europe's second-largest oil company to become part of its conteroversial partnership with OAO Rosneft, Russia's largest oil company. BP and Rosneft announced a $16 billion share swap earlier this year that will see the companies work together develop oil resources in the Russian part of the Arctic Circle.

TNK-BP, Russia's third-largest oil producer, has not been happy about the deal between BP and Rosneft and has pursued legal avenues to block the deal.

BP offered TNK-BP the chance to discuss with Rosneft the possibility of joining the Arctic project, but TNK-BP rejected that overture. Rosneft has previously said it did not consider TNK-BP as a participant in the project because the company lacks the relevant experience for the project.

"A proposal by BP's nominated directors which would have allowed TNK-BP to hold initial discussions with Rosneft about pursuing the Arctic opportunity, was rejected by Alfa, Access and Renova (AAR)," according to a BP-issued statement.

BP said it would like to resolve its dispute with TNK-BP, but the relationship between the two firms has become increasingly strained. TNK-BP accounts for a quarter of BP's total output and 20% of its total reserves.