this is. the headline president. against those behind a terror attack at moscow's airport management is also being blamed for the security of the suspected suicide bomber to kill thirty five the explosion which took place in the international arrivals area. last month. and breaking news this hour. parliament has ratified the new. treaty. by months of discussion. just

minutes ago the start deal will see the two countries. and claims of organ trafficking in kosovo come under scrutiny of europe's top human rights watch more than ten years after the alleged crimes were committed that's after a recent report claimed that thousands of serbs and albanians were killed or sold during the kosovo war in the late one nine hundred ninety s. . coming up next the spotlight interview program with. hello again oh welcome to throttle like the interview show on r.c.i. now we're now and today my guest is peter o'brien. one of the world's biggest oil companies british petroleum and

a major russian oil producer ross nets are now part of their big plans are to go to the oil rich arctic but environmental activists say this will destroy the area do these fears hold water we're asking vice president. peter o'brien and. british petroleum and draw snap to have done a multi-billion dollar shastri off to create what they call a groundbreaking global alliance the state controlled crosstown will allow b.p. into the well fields of the northern congressi. part and say they'll set up a not acknowledge center it will decide how best to safely extract oil and gas from the arctic shelf but the oil spill in the gulf of mexico left a big stage b.p.'s reputation and raised questions about the partnership the question is can it handle one of the world's unspoiled regions.

however so brian thanks for running welcome to the show well first of all i wanted to ask the the the question of environmental protection bush is one of the most discussed in the news concerning syria company and and b.p. since they're all spin in the gulf of mexico b.p. has a specially bad reputation of higher mental protection so the arctic environment is is particularly for a gyal so isn't it a too risky choice of a partner for for a for a big project major. project in the arctic. i appreciate the question it's obviously a very important issue and i think has been the recipient of much thought both at the company and i think the leadership of the country you would have seen probably some of the highlights from the meeting with prime minister putin and b.p. c.e.o. bob dudley this topic was addressed then i think it's been made clear by leadership

of russia that frankly the experience b.p. has had in the gulf of mexico or over the course of the period from the end of april last year through the end of last year should be viewed as a positive there are many exploration wells being drilled around the world. and have been doing so for many years this one incident is obviously it was painful for all of us in the industry to see at the same time looking back i think we can complement the way p.p. handled it we can also compliment i think the transparent nature in which b.p. is willing to discuss it and resolve any remaining issues as to compensation etc. in terms of our specific project setting up first a technology center and also a emergency potential rapid response center and in the event that there is some sort of event receive the highest priority as high as any of the commercial economic terms in the agreement and i would also say that it's early stages and

it's early days yet we have quite a bit of work to do before we understand that there is actually enough oil there to even drill an exploration well where to drill it and if we find oil and then exploration well then how to potentially develop it and produce it and any of those decisions will be driven first and foremost by making sure technology exists in order to do so safely well and there's a quote from the caller just said they they say they insist that no company in the world today has a know how safe drilling in the arctic and certainly not b.p. is that true well i think. frankly no company has experience yet drilling in this type of arm to say somebody would have experience in dealing with potential environmental hazards in the mislead intentionally dangerous what you're saying it is potentially of course it is potentially dangerous there will be process and both companies are committed to going to the utmost levels to ensure

that preventive measures are taken and we don't have any difficult issues how soon can the drilling itself start. well i think it's going to be a couple years. collecting seismic data and then sometime also interpret it. we think it's possible to spot meeting start the first well by the end or so two thousand and fifteen according to the license requirements there are three licenses and in the joint venture that will be pursuing with b.p. we should have two wells and each license by two thousand and twenty will have to benefit from b.p. sticks now that she's one of these technologies become open for a company without a doubt i mean i think from day one we've already agreed to be establishing a technology center likely to be in st petersburg. and we'll also be cooperating with some leading institutes globally both in europe and the united states that p.p.l. stuff to already work with for various projects and b.p.

has is going to be committing a very high quality exploration team and that exploration team in b.p. has a good track record of exploring successfully unfortunately the news floor on b.p. has been dominated by the gulf of mexico event since last april i you mentioned this meeting with prime minister putin well at this meeting where that b.p. c.e.o. bob dudley. promised to put mentioned that the joint venture could receive tax breaks in wage and mount and for how long the didn't specify. i don't believe he specified i was actually at that meeting but i don't believe he specified best based on everything i've seen and heard from from my colleagues at the company. and i also think i would say two things i think brakes or the word often used in russian. i think is is inappropriate i think what would needs to be discussed here

is a workable tax regime which takes into account the amount of capital that will be put at risk during expiration face. the duration of which that capital is at risk and then the amount of capital which will be need to need to be spent on development and it's a very different economic model if you will than production whatsoever so we are working at the request of prime minister putin together with b.p. to prepare a proposal as to what the tax regime would look like and we think there are a number of the presidents in the world which a number of other governments are very happy with including brazil potentially norway and of mexico i will continue quoting the western media bed because this is that the side of the story that they have the world audience now is and what we're trying to do to give us is to give them the other the other side of the story so the deal has spun of called an outcry in the u.s. over national security issues because b.p. is the fuel supplier for the american military ed markey u.s.

democratic congressman and natural resource committee member hold for the deal to be examined do you do you expect significant pressure from the united states concerning the deal itself there the implementation of your plans. a few things i was in london friday evening for the ceremony the signing ceremony last conference and i think we saw come across the tape seen the sciatic or one of the child was being shown at the time. this comment from congressman markey before we'd actually gone in and signed and announced so i'm not sure i think he some of his staff probably had some information from one of the news channels that had leaked and i'm confident that once congressman markey and other representatives or seiners or government officials in united states actually see the transaction. first of all it's five percent of b.p. . well i think more importantly once they see the transaction and understand that

this is actually highly positive for global energy security we are together with b.p. going to be using the latest technologies to bring hopefully on stream a new hydrocarbon basin that's incremental supply which the united states as and that consumer should be very positive about. but you're not commenting on this issue that b.p. is supplying feel for for the for the for the american military may or may this become a problem of them becoming involved in and russia with russian business companies i couldn't understand why it would be a problem. if in b.p. share capital there's a five percent shareholder with whom they have a strategic project undertaking together that could be producing significant oil for the well market and yeah yeah yeah you mean because because these five per cent have no possible way of influencing the fulfillment of the contract including the

the the u.s. military contract he will continue to fulfill its obligations in its own commercial interests and to the extent that contract with the u.s. military is a good one i'm sure they'll keep a fairly ok now how soon could draw sniff to get a seat beep. board of directors do you think this this will happen any time soon you know it hasn't been discussed and at five percent i would expect you would i don't again it hasn't been discussed and. it's not part of the agreement if you will that's in place and. we'll see how things evolve over the next few years but would i i guess ross next would would love this to happen someday or not or you're not interested oh i mean i think clearly both companies could benefit from having access if you will to more information and participating in decision making but i think it makes sense for that to be. in the context of the relevant corporate law

in both countries both for b.p. stake in the us not in russia and russia mistaken b.p. based on the actual equity owned by the two companies well after you have signed the agreement after the so finalized can you tell us who was more cautious who was who was more afraid what they were approaching each other your side or the board of the bt side. i had the mood in london was very positive i didn't see anybody being more or less i thought both sides were really very excited i think you know for russia and for ross nafta this is an opportunity to open a new hydrocarbon basin which b.p. for example has said could be as perspective as the entire u.k. north sea and with the risks that it presents which we talked about at the beginning of our discussion to be doing so and with the company that has a lot of offshore experience relevant technology. is super and i think that's

evident from the comments also prime minister putin who wasn't on friday but had seen the c.e.o. or leader. i don't think anybody should underestimate the impact that this project and this alliance will have and the positive science for the development of the russian offshore industry another good example is brazil and what the acceleration of fuel some of the offshore pre-sold opportunities there is doing for the construction business the oilfield services business and all the other auxiliary businesses transportation logistics etc that supply these massive projects. hopefully we get off to a good start with this first one and it can be a catalyst to develop it along the lines into the scale that we see in brazil says peter piot vice president of ross net spotlight will be back shortly right up to break so stay with us we'll continue in less than a minute. wealthy

british science is not. the time to let go. market why not. come to. find out what's really happening to the global economy with mike's cancer for a no holds barred look at the global financial headlines tune into cars a report on r g. more news today violence is once again flared up. saying these are the images the world has been seeing from the streets of kenya that. giant corporations are all.

russia would be so rich right if you knew it. from finance to pressurize. stock totty dot com. welcome back to spotlight i'll bring up in just a reminder my guest in the studio today is peter o'brien vice president of all sniffed mr bryan b.p. what can you just say cut

a deal in london is already present on the russian market as co-owners of the. b.p. company stand part of the chief executive of the russian outer tov the financial times recently like went all new business pursuit is in russia and ukraine must be proceeds through t n k b p that means a a r can pursue any ventures in these two countries outside team k b p and neither can be p. do you expect any legal actions from the a are sure our leaders. i don't expect any i mean you obviously have to ask them directly i think there are a few things to keep in mind first we were discussing three licenses in the russian arctic on a twenty five thousand square kilometers where only to make a large investment with the latest technology. the licenses are russian of licenses and we have agreements in place with b.p.

who has the role of experience in technology that's the first and second thing my understanding from b.p. is that they are in discussions with the russian partners. and that the necessary procedures. will be here too and there shouldn't be any issues. but what makes mr palmer say so well will are they really so much disappointed with you do you. i haven't read the detailed agreements between b.p. and they are the shareholder and t.k. b.p. . but this is a very large opportunity with the right technology and approach could be very positive for both our two companies and. i'm sure other players would love to dissipate. but for now we have licenses and we have an agreement b.p. ok let's get back to to what we read in the western press concerning so in your business in russia ross nest was criticized in the western press pretty much as

a matter of fact for buying up the ass so some of you saw after the conviction of mikhail heard that across ski the oligarchs lawyer robert amsterdam told the guardian i quote b.p. has absolutely zero idea what's in getting into if it had a dispute with its new partner with here and their partner would win every time and quote rosneft out so this somehow or you don't care about what people say that and they're all doing business with you i think it's. unfair to characterize the piece is not knowing what they're getting into and they've been participating in opportunities in russia here since the mid ninety's including with us and so on honey we've been working together for more than ten years. they also participated in our i.p.o. . during the preparation of which. some of the issues i think mr epstein i was

referring to were analyzed in the upmost to tell by some of the best international law firms potential risks from the previous you course related process itself and b.p. came to the decision to be i think the second largest acquire of shares in our i.p.o. that's almost five years ago. and clearly b.p. feels the same way today it's they're taking another nine and a half percent of the company well. robert out when he said what i just quoted i think he was he was trying to to represent the interests of foreign business foreign investors and it's common knowledge to everyone that foreign investors in russia are not happy about the russian judicial system about the way the russian courts wake well you are a foreigner but you work for a russian company so does that mean you in your position are happy with the russian divisional system. look if foreign investors are not happy with the russian

judicial system that's a problem ok because the country needs foreign investment and all investors whether they're foreign or russian should feel that their rights will be protected and that once they make an investment decision and start to pursue it if there are problems they will be resolved judiciously fairly in accordance with the law at the same time the open market economy in russia has been developing only for twenty years approximately these things take time it takes time to develop the judiciary at all levels which is going to be independent and has relevant case law with good if you. well judicial precedent so it's clearly an issue if foreign investors are not happy and as a result russia is losing out on investment dollars going to other countries and the leadership of the country needs to address that and i think recently that's obviously happening hopefully that will continue and speed up frankly so so is it

a yes or no are you happy with the with the states of the russian. course just other not that i live in russia i receive my salary here in rubles and pay taxes here and pay my rent and and i want the russian economy to succeed and if foreign investors are not happy that i'm not happy ok. b.p. russia president jeremy hunt has mentioned some areas outside of russia b.p. plans to develop together with ross and aft could you could you elaborate on that. well i think i think the two projects that we have now the arctic development and also we're in the midst of closing our acquisition of fifty percent of rural which is a joint venture for refining assets in germany which the fifty percent we're buying from the been as well a company and a basin. the other fifty percent owners b.p. so we'll have these two projects together and i think they're going to get the most of our focus in the near term at the same time we are keen to explore other

opportunities with b.p. other ones in their portfolio around the rest of the world or potentially new areas for both of us depending on each other's strengths and interests but i can honestly tell you that it's early days and we haven't gotten into any specifics of what those might be generally hard also said b.p. would initially invest one billion dollars into the exploration phase of the project is there an approximate figure of the total investment plant. there is i mean i think it's likely to be more than that if it if it looks like it's going to be successful. i think to adhere to the minimum wage since requirements of to decide three d. seismic and six exploration wells you know with cost inflation over the next five to eight years it is likely to be more than that maybe as much as two two billion dollars. but it's too early to say because these things happen in sequence you know

we collect data we analyze it we determine where it makes sense to drill and then we drill if we're successful we keep going if we're partially successful we keep going but maybe at a slightly slower pace if we're not successful then we have a discussion about does it make sense to continue or not. you know when i was based in london as a reporter for russian television i made that interesting. sort of lynching story for four for the television about russia paying fifty times more than britain for the residence of its ambassador because the rest of the some of the russian ambassador in london we pay one pound a year and the the english pay one rouble here for their arrests and so we're big fifty times more which is unfair so and now you actually five percent to five percent but b.p. shares remain very address to make sure that everybody says oh there's that mean

does that mean it's it's it's your when i mean the situation when you exchange he shares. well. keep in mind we're giving them nine percent nine point five percent not four or five percent of b.p. . i think both companies boards and management feel that both companies are undervalued i think the investor base might say you know the liability estimate that b.p. has had for the gulf of mexico is likely to come down they've done some good things with some asset sales and now they have some new projects coming on so once the industry reem braces them if you will like we are and they've also received some licenses recently from australia and some other places that the valuation might start to approach they also need to update the market on their dividend policy stop paying dividends for a while asked year because they wanted to make i believe a priority of repaying the claims first so once the dividend comes back on stream and the main u.k. institutional investor base gets comfortable going with the story now there is likely to be a pick up ok at this so it's maybe

a shorter term more concrete upside to to the b.p. story at the same time rostov to fuel look at the reserve base that we have the resources that we have. growing russian market leadership position we have in russia also the opportunity we have to be a few supplier to china i think our story frankly could be even more interesting but probably on a longer term basis and no longer have basis but when do you expect b.p. to start rising i wouldn't want to speculate and let's watch what they announce on february first when they put out their full year results and either then or shortly after that i expect the company to make a presentation update to community on their dividend policy for example and some other strategic plans that's likely to be positive when it when you said that you expect growth they have to start to start getting up a you mention like in the longer term basis do you connect this also with the arctic projects that may this be like like two to two thousand and sixteen seventeen so my dad well you know i mean i think

a little longer term relative to b.p. i mean folks would hardly wait five years. i think there are a number of investment projects that we're already undertaking upgrading our refineries for example. a few more upstream projects such as the one and he said we were called the homes which were likely to start soon as we get clarity on taxation . we're also likely to come out of the market this year with their new c.e.o. new colleague of mine policy a lot of to outline an updated strategy strategic view i think those are also likely to be positive but my point is that if you look at our reserves and resource potential of our market and russia it's just clear that if we can sort out for example the tax regime. we're trading much cheaper than b.p. in terms of a barrel of oil ok thank you thank you very much for being with us and just to remind that guest in the studio today was peter brock vice president last night

and that's it for now from all of us here if you want to have your say on spotify but i have someone in mind do you think i should interview next time just drop you want and i'll get off at the t.v. dot are you and let's keep the spotlight contract we will be back with more press than comments on what's going on in and outside pressure until then stay in our team and take it thank you thank you very much just by the way you know.

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