"BP Deal With Russian Oil Giant Collapses"

"LONDON — The disputed share swap and oil exploration agreement between BP and the Russian state-owned company Rosneft has collapsed, leaving some BP investors questioning the company’s future strategy and freeing Rosneft to look for a new partner in Russia.

After a Monday midnight deadline passed, BP’s proposed deal with Rosneft lapsed as the company failed to reach a last-minute agreement with Rosneft and resolve a dispute with BP’s Russian partners in a separate joint venture, TNK-BP.

The TNK-BP partners had taken legal action to block the BP-Rosneft deal almost as soon as it was announced in January.

BP said Tuesday it would continue to talk to both Rosneft and its partners in TNK-BP about collaborating in the future. But some analysts said salvaging the original deal would be difficult."

Julia Werdigier and Andrew E. Kramer report for the New York Times May 17, 2011.