changing in the in the past the big oil companies to b.p. the others have been taking the lead but going forward increasingly it's national companies billowing into states that are increasingly claiming control over the resources of their countries and so the international companies are having to change their game i mean it's no longer that they would go into a poor country and take and take the profits now they have to share with governments and of course that's a very tricky relationship to manage having said that b.p.'s been working in russia pretty much since the beginning i mean this is their joint venture and become experts in making these managing these relationships although the they could be problems they probably will be arguments nevertheless both sides are committed to making it work. in crisis hit america it seems not everyone is down on their knees particularly government workers in washington d.c. that dining at exclusive gormley restaurants and living in million dollar mansions all while their private sector colleagues suffer

the big oil companies. b.p. the others have been taking the lead but going forward increasingly it's national companies belonging to states that are increasingly claiming control over the resources of their countries and so the international companies are having to change their game i mean it's no longer that they would go into a poor country and take and take the profits now they have to share with governments in a very tricky relationship to manage having said that b.p.'s been working in russia pretty much since the beginning i mean this is their joint venture and they become experts at making these managing these relationships and as i say the interests very much in line between the two parties although they could be problems that will be will be arguments nevertheless both sides it makes it's making you think it is something of a trendy thing wealthy similar deals in the future with more companies coming to do business in russia. they were. going to endear them in the end and i picked up russia just had a mas

good to have your company b.p. and last may have to happen to get agreed to jointly develop a number of projects notably on russia's arctic shelf the fields potential capacity is around three and a half percent of the world's proven oil reserves and roughly five percent of the world's gas reserves the all majors have also agreed to swap shares b.p. will provide five percent of its shares worth around eight billion dollars in exchange for nine and a half percent of rawson yet now earlier we spoke to constantine seaman of the head of the national energy security fund and he says the deal will promote investment in russia. there must be some kind of technical mistake to go hopefully bring you that comment a bit later. let's take a look at how the markets closed on friday session hopefully will be able to bring you those figures in russia there was a slight correction on friday. there was a slight correction on friday the markets were down around half a percent but overall the week was indeed very good to my six games

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 they have some new projects coming on so once the industry reem braces them if you will like we are and have 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 ast year because they want 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 ross have to feel 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

b.p. is a private company and so b.p. made this decision i think it's very difficult to speak that it's dangerous to the russian state to be the part of the d.p. company b. you have to say that look of approximately one hundred percent free flow if you can buy. it's up to you because we're open private companies or why it's dangerous china for example is appropriate to more than one percent of the i mean cheney's company so i don't think it's a problem so you think for the russian business climate having such a such a deal is is a good idea absolutely because you know that i said about last year because russian government during all two thousand and seven soon we will have the realization of. weeks of tax regime the british of our world war you were speaking about for us and because. we made themselves an eight hour president signed the floor about foreign investment it was two things you go in the serious and there were huge discussion that now we see the closing of russian market now we want to stall with because and por

good to have your company b.p. and rosneft have indeed agreed to jointly develop a number of projects notably on russia's arctic shelf the fields potential capacity is around three and a half percent of the world's proven oil reserves and roughly five percent of the world's gas reserves you all majors of also agreed to swap shares b.p. will provide five percent of its shares worth around eight billion dollars in exchange for nine and a half percent in rosneft only we spoke to constantin seaman of the head of the national energy security fund and he says the deal will promote investment in russia. i think it's an excellent deal for both companies and not only for companies we can also mention the interests of russian federation us speaking about b.p. company of course we know where it will be story in mexican gulf and after this the easing the serious need in a good news if you're supposed to say it's also bad is why for b.p. of course it's an excellent use because. you are in the last half of the year b.p. will say

b.p. for many years they're competent and have strong experience of russian companies so she said i want to show you so there is a strong relationship already in place between b.p. and rosneft before this deals even been signed and of course this is a large area this hundred twenty five thousand square kilometers is going to benefit both sides and the extra expertise technology and cash of course will be needed to be to be brought in so that's where b.p. comes in really the piece incredibly contrite now about the gulf of mexico oil spill the new c.e.o. bob dudley was brought into specifically to rehabilitate the reputation of the company if you like following that disaster and he's certainly going a long way towards doing that he talks a lot about it talks about how much they've learned and the chairman of ross snifter actually said to me expression which basically translates as once bitten twice shy he thinks that specifically because he suffered this disaster and was blamed for it particularly by the americans they will think twice about what they're doing next time so a company like that

b.p. on such a grand venture and may the company the number one choice. it is a question that everybody was asking particularly in the wake of the huge oil spill disaster in the gulf of mexico last year of course b.p. presided over that and was blamed for it and it's. only hayward was the full guy for that and had to resign in the wake of it but b.p. has been working in russia for twenty years obviously we still have the big tie up between the russian oil company t n k and b which the current of the people dudley was in charge of so a huge amount of experience that rosneft and russian general said last night that they have a strong belief in in the competency of b.p. despite that oil spill in the mexican gulf i spoke to deputy prime minister of section about exactly that let's hear what he had to say about why they. well as a book. is working on a new strategy aimed at transforming the company into an international energy holder deal with b.p. is of course part of the strategy they've gained a great deal of experience including the gulf of mexico oil spill

b.p. for many years they're competent and have strong experience of russian companies arguably a deal with rosneft improves the energy security and it also puts b.p. on a firm of financial footing following last year's massive oil. in the gulf of mexico but the question on everyone's lips is whether b.p. will partner with the developing the textile following that huge environmental disaster but b.p.'s c.e.o. bob dudley says the company learns a lot from that and they're ready to move into the delicate environment b.p. has been working with ross now for twelve years now and we've been working on the arctic for since two thousand and five was working with cycling you know our capabilities our exploration capabilities and i think to be honest we learned a lot about what happened in the gulf of mexico shaken the company to the core we're going to renewed focus on safety and risk management and the technology that's new for the environmental care what we do the deal is a two way street the russian governments probably say creates a favorable economic environment meanwhile b.p. hopes it will imp

the big oil companies to b.p. the others have been taking the lead but going forward increasingly it's national companies going to states that are increasingly claiming control over the resources of their countries and so the international companies are having to change their game i mean it's no longer that they would go into a poor country and take and take the profits now they have to share with governments and of course that's a very tricky relationship to manage having said that b.p. has been working pretty much since the beginning i mean this is their joint venture and they become experts in making these managing these relationships although they could be problems they probably will be arguments nevertheless both sides are committed to making it work. and still ahead for you this hour on r t the need for speed russian style. this superpower over able of speedy travel whatever the weather. now as america tries to find its way out of the economic crisis one part of the workforce has stayed protected from financi

b.p. for many years they are competent and have strong experience of russian companies the aim is that b.p. will team up to develop three areas on the russian shelf that's potentially a lot of oil and gas down there which russ nafta owns the license to exploit it's a huge area around one hundred twenty five thousand square kilometers and it won't be easy to extract the resources the arctic the highly inhospitable environments and requires sophisticated technology and billions of dollars of investment but aside from the cash b.p. c.e.o. bob dudley says they've also got the life experience has been working with us now for twelve years now and we've been working on the arctic for since two thousand and five with ross working with our capabilities our expression capabilities and i think to be honest we learned a lot about what happened in the gulf of mexico shaken the company to the core we're going to really focus on safety and risk management technology. for environmental care what we do the russian government's behind the deal and prime minister putin says all parties are ready for the chal

then welcome to business it's a good to have your company b.p.'s billionaire partners that russian joint venture . how filed a claim to a london court opposing b.p.'s plans to jointly develop rich arctic fields together with rosneft the tycoons known collectively as a considerate are concerned that the deal might push them out of bed with me p a insists it doesn't want to block that you know what wants to be brought in however analysts doubt the legal action will achieve its goal he produces up to a third of b.p.'s oil output and the head of b.p. has highlighted that the company was acting within the law and was ready to share all documents with patents. we intend absolutely to follow all of our agreements with them we're certainly not in breach of those agreements we'll be sharing the information with them shortly b.p. is a very important venture for b.p. it's a very successful company and we see it as prospects for growth. great capability of operating on shore in russia which is now actually operate off shore the kinds of work that would be don

b.p. it's the first major equity linked partnership between a national and international oil company when it's done in five percent of b.p. in exchange for a nine and a half percent share in the russian oil made. ross next chairman deputy prime minister. told r.t. it's the beginning of a new direction for the company. is working on a new strategy aimed at transforming the company into an international energy holding our deal with b.p. is of course part of the strategy they've gained a great deal of experience including the gulf of mexico oil spill cleanup operation b.p. has learned from this experience and our joint venture will be carried out with the greatest level of measures aimed at protecting the environment we've been working with b.p. for many years they're competent and have strong experience of russian companies the aim is that b.p. will team up to develop three areas on the russian arctic shelf that's potentially a lot of oil and gas down the which rosneft owns the license to exploit it's a huge area around one hundred twenty five thousand square kilometers and it won't be easy

b.p.'s proposed a swap with rosneft worth around eight billion dollars has been met with approval by russia's third largest oil company t n k b.p. the partnership will see both the partnership will see both exploit potentially massive oil and gas deposits in russia's arctic cardinal shelf a lot of pointed analysts b.p. has proposed share swap with the us nafta is primarily beneficial for the russian oil giant giving it access to some of the latest technologies and improving corporate governance analysts say the asset swap alone is very clever move by rosneft. earlier i spoke with jacob now chief economic the chief economist for russia and c.i.s. at morgan stanley who explained who the main beneficiaries of the deal will be each partner has to offer the other the opportunity to participate in a free. piece of business. in russia. but i think. that's the russian partners of b.p. into b.p. will be happy to c.p.p. shoulder the expense of course the risk of exploration and i think this is she will royce only if they make a significant discovery so do you see anything threatening the deal no i don't know with the support of