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		</div><p><a href="http://londonglossy.com/wp-content/uploads/2011/01/bp-shares-rise-after-rosneft-deal.jpg"><img class="alignnone size-full" title="BP chief executive Bob Dudley (left) and Rosneft boss Eduard Khudainatov confirm the Arctic exploration deal" src="http://londonglossy.com/wp-content/uploads/2011/01/min-bp-shares-rise-after-rosneft-deal.jpg" alt="BP chief executive Bob Dudley (left) and Rosneft boss Eduard Khudainatov confirm the Arctic exploration deal"/></a></p>
<p>The market has given a warm welcome to BP&#8217;s £10 billion deal with Russian oil giant Rosneft following Friday&#8217;s news of an Arctic exploration alliance.</p>
<p>Shares in BP rose 2% in the first day of trading since the deal was announced despite reports of opposition from BP&#8217;s partners in their existing Russian joint venture TNK-BP.</p>
<p>The alliance will see BP take an additional 9.5% stake in Russian government-owned Rosneft while Rosneft will take a 5% stake in the London-based company.</p>
<p>The companies will work together to explore the Russian Arctic continental shelf in an area of the South Kara Sea covering more than 48,000 square miles &#8211; one of the world&#8217;s last remaining unexplored basins.</p>
<p>It will give BP access to a new territory while Rosneft will gain from BP&#8217;s expertise in deep-water drilling.</p>
<p>But there were reports of a backlash from co-owners of TNK-BP, with speculation they were examining whether the Rosneft deal breaches their agreement to only pursue new opportunities in Russia through the venture.</p>
<p>Experts at Collins Stewart said there may also be political opposition in the US and that doing more business in Russia will increase BP&#8217;s risk profile in the eyes of many investors.</p>
<p>They added: &#8220;While this deal could prove to be a major long-term positive for BP, we think it raises a host of issues, both positive and negative.&#8221;</p>
<p>They estimate that, while there could be tens of billions of barrels of oil in the region, any reserves would take a long time to tap because of its remote location.</p>
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