On Jan. 14, two of the world's oil giants, Russia's Rosneft and BP, announced an unprecedented "strategic global alliance," in which they will be exchanging shares and expanding their joint ventures, including launching a new Arctic oil-drilling project. Both companies bring important assets to their new alliance, but the deal has alarmed foreign governments and environmentalist organizations due to its potential commercial, security, and ecological implications. The arrangement also raises interesting questions related to the Russian government's economic modernization program.
Through the deal, Rosneft will acquire 5 percent of BP's shares, while BP will obtain an additional 9.5 percent share of Rosneft, bringing its total stake in Rosneft to 10.8 percent. The deal will further tighten the unusually close ties between one of the world's largest private-sector multinational oil companies and an energy corporation owned by a national government. BP's oil production is currently 3.5 million barrels per day (bpd), more than four percent of the world's oil production, while Rosneft produces 2.5 million bpd. ...
To read the rest, sign up to try World Politics Review
Sign up for two weeks of free access with your credit card. Cancel any time during the free trial and you will be charged nothing.
Request a free trial for your office or school. Everyone at a given site can get access through our institutional subscriptions.
- Global Insights: New Technologies Complicate U.S.-Russia-China Arms Control
- Diplomatic Fallout: Greek Financial Crisis Forces EU to Play for Time on Ukraine, Migrants
- Russia Becomes the Middle East’s Preferred but Flawed Nuclear Partner
- World Citizen: In New Rivalry, Great Powers Come Calling on India and Pakistan
- The Realist Prism: Crises in Ukraine, Mediterranean Put NATO Solidarity to the Test