Arbitration Panel Blocks BP-Rosneft Deal

Skadden secured a major arbitration victory for Alfa, Access & Renova (AAR) in its dispute with BP regarding the latter’s proposed $ 16 billion strategic alliance with Rosneft, the state-owned Russian oil and gas company, for Arctic Circle oil exploration.

Skadden previously had obtained an injunction from the U.K. High Court of Justice blocking the deal, pending determination of the parties’ claims in an arbitration under their shareholders agreement. On March 24, the arbitration tribunal ruled in AAR’s favor, accepted its argument that the shareholders agreement prohibited BP from entering into the arrangements with Rosneft, and continued the injunction preventing BP from completing the transaction and from having any negotiations with Rosneft.