Rosneft to Drop BP in Arctic Oil Deal
Written By: John Shimkus
Russian oil firm Rosneft and British Petroleum (BP) have been working on a deal to explore Russian Arctic oil reserves in a joint venture worth an estimated $7.8 billion. The deal would help bolster BP’s portfolio following the company’s decline in the wake of the Deepwater Horizon catastrophe in the Gulf of Mexico. However, shareholders in BP’s already existing Russian joint venture, TNK-BP, have expressed their condemnation of a deal with Rosneft.
TNK-BP has served as BP’s Russian arm since 2003, and shareholders want their rightful cut of BP’s Arctic interests. The joint venture between Rosneft and BP has been in the works for sometime now, and the deadline to complete the pact is set for Thursday, April 14, 2011. Unless BP can convince Rosneft to extend the deadline, then BP will lose the deal. This is especially difficult considering the dispute between BP and TNK-BP has already made its way to an arbitration court.
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There is yet another option, though. Analysts believe that if BP pursued the joint venture through TNK-BP, then BP would take a sleight loss, but all shareholders would be satisfied.
BP may be able to pull off some kind of miracle and salvage the deal; however, representatives from Rosneft are already commenting that the company will likely seek another partner.
BP has seen an average drop of 29 percent in its share price since the Gulf of Mexico incident, and losing the Arctic deal will surely hurt the company further. Some estimate the Rosneft deal to potentially be worth more than its stake in TNK-BP, and it would not be out of the question for BP to either buy out the remaining shares of TNK-BP or sell its shares to pursue the Rosneft deal.
Hydrostor receives $4m funding for A-CAES facility in Canada
Hydrostor has received $4m funding to develop a 300-500MW Advanced Compressed Air Energy Storage (A-CAES) facility in Canada.
The funding will be used to complete essential engineering and planning, and enable Hydrostor to plan construction.
The project will be modeled on Hydrostor’s commercially operating Goderich storage facility, providing up to 12 hours of energy storage.
Hydrostor’s A-CAES system supports Canada’s green economic transition by designing, building, and operating emissions-free energy storage facilities, and employing people, suppliers, and technologies from the oil and gas sector.
The Honorable Seamus O’Regan, Jr. Minister of Natural Resources, said: “Investing in clean technology will lower emissions and increase our competitiveness. This is how we get to net zero by 2050.”
A-CAES has the potential to lower greenhouse gas emissions by enabling the transition to a cleaner and more flexible electricity grid. Specifically, the low-impact and cost-effective technology will reduce the use of fossil fuels and will provide reliable and bankable energy storage solutions for utilities and regulators, while integrating renewable energy for sustainable growth.
Curtis VanWalleghem, Hydrostor’s Chief Executive Officer, said: “We are grateful for the federal government’s support of our long duration energy storage solution that is critical to enabling the clean energy transition. This made-in-Canada solution, with the support of NRCan and Sustainable Development Technology Canada, is ready to be widely deployed within Canada and globally to lower electricity rates and decarbonize the electricity sector."
The Rosamond A-CAES 500MW Project is under advanced development and targeting a 2024 launch. It is designed to turn California’s growing solar and wind resources into on-demand peak capacity while allowing for closure of fossil fuel generating stations.
Hydrostor closed US$37 million (C$49 million) in growth financing in September 2019.