BP (NYSE:BP), Russia in Arctic Drilling Deal

After months of talks and negotiations, BP (NYSE:BP) and Russia have come to agreement on drilling for offshore oil in the Arctic, opening up a potentially huge reserve of oil to both parties.

With Russia depending heavily on oil production for its exports, Prime Minister Vladimir Putin said BP is the best oil company to work with, citing the lessons they learned from the oil spill in the Gulf of Mexico.

Most of the exploratory drilling will probably happen in the region of the Kara Sea, according to Russian authorities. Drilling in the region has revealed significant amounts of natural gas and oil deposits.

Specifics of the deal will be released sometime soon, including specific areas and time frames.

BP closed Tuesday at $47.05, gaining $0.36, or 0.77 percent.

Russia's Rosneft Acquires 5 Percent Stake in BP (NYSE:BP)

More news is coming out concerning the deal between BP (NYSE:BP) and the largest oil company in Russia: Rosneft. The latest is the Russian oil giant has taken a 5 percent stake in BP common shares in exchange for approximately 9.5 percent of Rosneft.

BP and Russia have had a cooperation agreement in place since 2006, but this is the real first action that has been taken since then by the two entities.

According to BP, they said in a statement that it will "create strategic alignment to pursue joint projects and demonstrates mutual confidence in the growth potential of both companies."

Russia's Vladimir Putin has signed off on the deal, which BP's CEO Bob Dudley said will result in the development of the Kara Sea region in the Siberian North.

BP closed Friday at $49.25, gaining $1.71, or 3.60 percent.

BP (NYSE:BP), Total (NYSE:TOT) Talking with Russia over Offshore Oil Fields

BP (NYSE:BP) and Total (NYSE:TOT) have been approached by Russia to enter into talks concerning offshore oil fields in the region which have been in the past off limits for foreign companies.

Russian Prime Minister Vladimir Putin recently met with a group of potential foreign investors and companies who aired their concerns over challenges which need to be addressed and improvements made to loosen their pocketbooks and enter into the Russian market.

Russia realizes it must make improvements to attract foreign investment, and part of that strategy, apparently, is to open up formerly closed sectors.

Deputy Prime Minister Igor Sechin and Eduard Khudainatov, who is CEO of Rosneft, the giant Russian oil company, said they talked with BP and Total about "potential future cooperation on offshore deposits."

BP CEO Bob Dudley and Total's Christophe de Margerie participated in the discussions.