Saturday, January 15, 2011

"With this deal, [BP] now stands for Bolshoi Petroleum"

Within the Bloomberg story:

The deal [between BP and Russian state oil producer OAO Rosneft ] is BP Chief Executive Officer Bob Dudley’s biggest since he took the helm in October, charged with rebuilding the company after the worst U.S. offshore oil spill.


“This acquisition will almost certainly complicate the politics of levying and collecting damages from BP following their Gulf of Mexico oil spill,” Markey, a Massachusetts Democrat, said in a statement on his website. “BP once stood for British Petroleum. With this deal, it now stands for Bolshoi Petroleum.”


“The Arctic is the new frontier of oil development and Rosneft obviously has faith in BP’s historic interest in offshore drilling,” said Brian Youngberg, an analyst at Edward Jones & Co. in St. Louis, who has a hold rating on BP shares and doesn’t own any. The U.S. oil spill “isn’t fazing Rosneft.”

Dudley was ousted in 2008 as head of TNK-BP because of a dispute between BP and its Russian billionaire partners, who accused the British company of treating the Moscow-based company as a unit.

In terms of trademark concepts, what might bother some people (Gulf oil spill) does not necessarily bother other people (Rosneft). In terms of technology, the Russians seem to be betting on what BP has in the way of offshore drilling. Is it the patents, or is it trade secrets?


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