The original idea of BP (NYSE:BP) and Russian oil production giant Rosneft to participate in a production sharing agreement (PSA) together has been shelved.
Instead the two companies will work together under an operating service contract, with BP developing the offshore oil reserves in the Arctic.
Citing Rosneft Vice President Pavel Fyodorov, Reuters said, "It will be an operating joint venture in accordance with federal laws on subsoil use. It will be an operating service contract."
BP closed Friday at $46.03, down $0.55, or 1.18 percent.
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