U.K. oil major BP PLC (BP) has agreed with shareholders at Caspian Pipeline Consortium to exit the project, Mikhail Barkov, deputy chief executive of Russian oil pipeline operator Transneft (TRNFP.RS), said Wednesday.
"This morning we signed an agreement with BP, which allows the company to exit the project," Barkov said at a ceremony marking the signing of a memorandum of understanding by shareholders to expand throughput at the pipeline, which carries crude from Kazakhstan to the Russian port of Novorossiysk.
According to the shareholder agreement, BP, which holds a 6.625% stake in the pipeline, was able to block the expansion of the pipeline.