Heat is on as Shell muscles in on BP's Russian deal

BP is under intense pressure to settle the dispute with the four oligarch shareholders in its Russian joint venture that threatens the company's future, after it emerged that rival Shell was holding talks with Kremlin-owned oil giant Rosneft about Arctic exploration.

Rosneft's powerful chairman and Russia's Deputy Prime Minister, Igor Sechin, said the company preferred to do a deal with BP, but that whatever happened its policy of exploiting Arctic oil and gas reserves would go ahead.

A Rosneft source said: 'If we do not get a deal with BP, the state holding will find a new partner. Within the past three months Rosneft has received offers to work together from several leading energy companies, including Shell.'


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