BP

Maybe - this from the FT on the 11th. The deal agreed by Shell tonight looks much better than expected. Even so, this is surely the reason for weakness; the worry that others will follow Russia's example and just pinch back their oil. Perhaps for nothing?


"The Kremlin has once again forced the owners of a prize Russian energy asset to cede control. This time, the victims are Shell and its partners in the $20bn Sakhalin-2 gas project who have been pressed to surrender a majority stake to Gazprom, the gas monopoly.

Shell is still negotiating the terms with Gazprom, but should expect no favours. The Russians have the whip hand, and they know it. It is another poor day for the rule of law and the sanctity of contract. It bodes ill for other foreign groups in the Russian energy sector, not least BP, which through its BP-TNK joint venture controls the giant Kovykta gas deposit – another asset coveted by Gazprom".