A Siberian court on Friday piled more legal pressure on BP (IW 1000/3) by ordering the British group to pay $3.1 billion in damages for its attempted Arctic oil exploration tie-up with the state giant Rosneft.
The ruling comes as BP holds direct negotiations with Rosneft, Russia's largest oil firm, to buy out the British firm's stake in the troubled TNK-BP joint venture it co-owns with four local tycoons.
A lawyer for plaintiff Andrei Prokhorov said the court's 100-billion-ruble (US$3.1-billion) ruling came against BP plc and the group's BP Russia Investment Limited venture.
"We are fully satisfied," attorney Dmitry Chepurenko said by telephone from the oil-producing region of Tyumen. "For us, this decision was not a surprise."
Prokhorov, a minority shareholder, had reduced demands in his suit to $8.9 billion from the original sum of $12.5 billion on account of a drop in the price of oil since the day the initial agreement was first signed in January 2011.
Prokhorov has always denied he was acting in the interests of the four powerful Soviet-era billionaires who operate their half of the company through the Alfa Access Renova consortium.
AAR successfully blocked the deal in a European court of arbitration by arguing that BP had an obligations to offer TNK-BP priority rights to any operations it would like to conduct across the country.
Prokhorov said TNK-BP Holding lost potential profits by being shut out of the $16 billion share-swap and joint exploration venture.
The Arctic deal eventually went to ExxonMobil.
The ruling will make no immediate financial impact on BP because it can still fight the ruling in higher courts -- a process that Prokhorov's attorney said could take "at least" six months.
But it will also remind BP of the other court battles it has waged -- and often lost -- in Russia when facing complications with either its tycoon partners or the state.
