There seems to be no early respite for the British oil giant, BP following a major fiasco in Gulf-of-Mexico. As per reports, the deal between BP and Rosneft for an Arctic exploration venture has been jinxed on Tuesday against deadlock with its existing partners in Russia, known as AAR, which has been earning profits with its deal in the name of TNK-BP.
As per BP Chief Executive, Bob Dudley, the deal with Russian state-controlled Rosneft is a lucrative offer to revive its crippling financial situation by roping in return rather than focusing on output.
As BP has been lobbying really hard for Rosneft deal, the market analysts are of the view that Dudley's strategy of diluting mature assets and seeking out new projects are going to collapse sooner or later.
Inspite of gaining below par profit from BP’s business association with places like China, India and Indonesia, BP’s future remained under clouds in the US, where it’s facing billions of compensation claims due to pilferage of oil in Gulf-of-Mexico, causing major environmental damage to the Americans in the history.
Inspite of consistent assertion from Rosneft over its belief on the capability of Dudley to seam through such times, market analysts are of the view that lest some concrete deal is being struck by BP, investors won’t be putting much weight to the association between BP and its Russian partner.