BP Pulls Out of Russian Joint Venture (BP, XOM, RDS-A)

After nearly 13 years of effort, BP plc (NYSE: BP) has decided to walk away from its joint venture with Russia’s OAO Rosneft to develop the Sakhalin-5 project. The company said that the economics of the project, offshore of Russia’s east coast, were not favorable. Exxon Mobil Corp. (NYSE: XOM) and Royal Dutch Shell plc (NYSE: RDS-A) continue to be partners with Russian companies in producing oil & gas from two other projects at Sakhalin.

Rosneft has said that it will not seek a new partner and that it expects to complete its due diligence on the project by February, at which time Rosneft will presumably make BP an offer it can’t refuse for its share of the venture.