Is BP a safe investment?

Now that BP is agreeing a share swap with Russian state-owned oil company Rosneft, should investors be worried? Russia has a checkered history when it comes to land-grabs on commodity assets, and the Russian government may one day decide to bend the agreement between BP and Rosneft - for example, once the oil and gas are flowing and BP's expertise is not seen as essential any more. An alternative view is that links to foreign national companies are essential for future income security.

There are several years before any meaningful oil supply could begin, and a long while thereafter before investment costs will be recouped. In the meantime, BP will benefit from this deal as its US counterparts fail to sign up to Arctic deals. It is an unfortunate truth that Arctic oil exploration is necessary, and companies doing this to internationally agreed standards will reap the benefits.

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