Per DM

Per DM

January 17, 2011 08:13 ET

Jesse Young CEO of Per DM Believes BP and Russia's Rosneft Share Swap Deal Is Good for BP and Good for the UK

LONDON, UNITED KINGDOM--(Marketwire - Jan. 17, 2011) - BP on Friday unveiled a $16 billion share swap with the Russian State oil company Rosneft making them BP's biggest single shareholder at 5%. In the historical share swap deal BP, at the same time, became the first private sector shareholder of a Russian state company. "Given the recent troubles BP have had this makes economic sense," says Jesse Young CEO of Per DM Group one of the UK's most successful outsource sales organisations.

Predictably there has been a backlash from the USA with Michael Burgess, a Republican congressman from Texas calling for an inquiry on the grounds of national security. His statement: "The national security implications of BP America being involved with the Russian company – that does require scrutiny".

"It is a clear indication of where the US psyche sits on this one," said Jesse Young. "Let's not forget that only a few months ago US politicians were talking of BP as being 'British Petroleum' as they sought to apportion blame for the Gulf of Mexico oil disaster."

Per DM Group are positive about the deal which gives BP access to three blocks in the Kara Sea, the most promising region in the Arctic, which is considered to be as great as, if not bigger than, the North Sea fields. It is not difficult to understand BP's strategy. As it stands it is unclear when, or if ever, BP America will be granted new licences in the Gulf of Mexico. "For a company whose share price and financial health sits at the core of so many UK pension funds, this deal is a welcome boost to the UK economy," says the Per DM Group's CEO.

Fifty years ago oil giants like BP controlled 60% of the world's oil production. Slowly but surely state owned oil companies have reduced this to today's level. Philip Lambert of Lambert Energy, the investment bank who advised BP stated: "The old model was that international oil companies would come into a country with technology and capital, but offer little back to the host country in their core business. There was no reciprocity. In a world where the power has shifted to the national oil companies, and they are wanting to globalise, that model had to give."

"With America, a region that sat at the core of its growth, effectively shut down to BP, steps had to be taken to fill that gap," says Per DM Group's Jesse Young. A new model had to be created which promises long term stability for the company. This deal BP believe will "herald the company's resurgence" and eases its dependency on North America.

Of course we have still to see the consequences of the timing of this deal ahead of the findings of President Barack Obama's oil spill commission.

Per DM Contact Marketing Limited was established in August 2005 in response to the UK markets' need for a field sales organisation capable of delivering high quality results with consistency and reliability.

The company was formed by a group of former UK financial services executives and senior executives from the leading North American field sales agency and since 2005 we have continually recruited leading figures from the B2C and B2B business arena.

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