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Wednesday, April 13, 2011

BP-Rosneft deal at risk as swap deadline nears, (BP), (ROSN), (TNBP)

BP's (BP.L) tie-up with Rosneft (ROSN.MM) was at risk of collapse on Wednesday as the state-controlled Russian oil major said it would not extend a Thursday deadline on a $16 billion share swap. The possible failure of the deal would hurt CEO Bob Dudley, who on Thursday faces shareholders angered by the Gulf of Mexico disaster as BP holds its AGM, and also Russian Deputy Premier Igor Sechin, who masterminded the deal for Rosneft. The pact to exchange equity stakes and launch an Arctic offshore exploration venture fell foul of a legal challenge by the billionaire co-owners of BP's Russian venture TNK-BP (TNBP.MM). Arbitration has failed to yield a compromise. "The deadline has not been extended," Rosneft spokesman Rustam Kazharov said.