Find the latest episode of "The Uncertain Hour" here. Listen

Court ruling freezes a major BP oil deal

Stephen Beard Mar 25, 2011
HTML EMBED:
COPY

Court ruling freezes a major BP oil deal

Stephen Beard Mar 25, 2011
HTML EMBED:
COPY

STEVE CHIOTAKIS: Almost a year after the biggest oil spill in U.S. history, British oil giant BP is in trouble again. A $15 billion deal for access to key oil fields in Russia is hanging by a thread.

From London, here’s Marketplace’s Stephen Beard.


STEPHEN BEARD: Just after last years’ disaster BP signed a $15 billion deal to drill for oil and gas in the Arctic. Its partner: An oil company largely owned by the Russian government.

But BP already had some Russian partners. They weren’t part of the deal, they felt shut out and took legal action to stop it. They’ve just won their case.

Neil Macgregor — an oil analyst with stockbrokers Redmayne Bentley. He says BP has just suffered another big hit to its reputation, when this Arctic venture was supposed to improved its image.

NEIL MACGREGOR: This deal showed that BP was hurt by the Gulf of Mexico but not yet crippled and could still be a large player, in large deals going forward in new frontiers.

If the Arctic deal does falls through BP may have to pay the state-owned oil company a fortune in compensation.

In London this is Stephen Beard for Marketplace.

Marketplace is on a mission.

We believe Main Street matters as much as Wall Street, economic news is made relevant and real through human stories, and a touch of humor helps enliven topics you might typically find…well, dull.

Through the signature style that only Marketplace can deliver, we’re on a mission to raise the economic intelligence of the country—but we don’t do it alone. We count on listeners and readers like you to keep this public service free and accessible to all. Will you become a partner in our mission today?

Your donation is critical to the future of public service journalism. Support our work today – for as little as $5 – and help us keep making people smarter.