LONDON/MOSCOW, April 8 (Reuters) - An arbitration panel on April 8 upheld an interim injunction blocking a $16 billion share swap between BP and Rosneft, but gave the British oil giant a chance to try to extend an April 14 deadline on the deal.
The ruling, at the end of a week of hearings in London, marks another victory for the co-owners of BP’s Russian venture TNK-BP, who argue that a strategic alliance between BP and Rosneft violates TNK-BP’s shareholder agreement.
"The arbitral tribunal has ruled that the interim injunction prohibiting closing of the share swap transaction will remain in place until further notice," BP said in a statement.
"However BP is now able to discuss the possibility of an extension of the April 14 deadline under which the share swap agreement will terminate."
TNK-BP’s shareholder-managers, led by CEO Mikhail Fridman, have won every round so far in the legal battle over the BP-Rosneft deal that was announced amid fanfare at the Davos Economic Forum in January.
A source close to TNK-BP management and a Rosneft spokesman declined to comment on Friday’s arbitration ruling.
In a first decision on March 24, the arbitration tribunal — a forum for mediating business disputes — upheld an injunction against the BP-Rosneft deal to conduct the share swap and launch an Arctic offshore exploration venture.
This, the second round of arbitration, heard a further request brought by BP to consider the share swap as a standalone deal.
A possible extension to the deadline on the share swap will keep BP’s hopes of completing the Rosneft deal alive, but will boost the position of Fridman and his associates, who want to insert TNK-BP as the vehicle for the BP-Rosneft venture.
BP had no further substantial comment on its next move, with a spokesman saying only: "We are considering our options."
Sources close to TNK-BP management said on Thursday that BP had requested a meeting of the company’s board next week. The board has on a number of occasions failed to break the deadlock over the BP-Rosneft deal.
