BP’s shares rose on Monday on news of its Arctic exploration deal with Russia’s Rosneft.
A joint venture will develop three of Rosneft’s offshore exploration blocks in northern Russia, which the companies believe said could hold 60 billion barrels of oil.
However analysts said that any return is likely a long way off.
The two are also swapping shares – which has reportedly upset its Russian partners in TNK-BP.
They may challenge BP on whether the exploration plan violates the terms of their partnership and call for it to use TNK-BP as its vehicle for the Arctic investment.
Rosneft shares rose on hopes that BP’s offshore technology will enable it to tap reserves that analysts believe it does not have the skills to access alone.
As part of the deal, BP will swap a five percent stake in itself for a 9.5 percent stake in Rosneft.