In this case, there was a 4.9 billion share between the two companies (Chzan, 2013).The joint venture is a collaboration between an international private oil company and a national oil company (Brinded, 2010). BP stands in the history as a major oil explorer worldwide whose ownership was privatised or acquired from the government and since then, it has seen tremendous growth in different areas in the world. On the contrary, Rosneft is a Russian National Oil Company and has also been a major player in oil exploration. In this case, the joint venture offers the opportunity to understand some of the benefits that government and private firm joint ventures provide as well as some of the considerations before settling for the investments including potential issues, challenges, and drivers for such particular ventures (Penttila, 2005).The particular joint venture is also important because both the governments and private firms inject different forms of investment into the exploration business (Brinded, 2010). On the other hand, such ventures require high capital investments thus the need for the government-private firm partnership where the government provides the necessary resources while the private company offers the expertise to explore the oil resources (Grant, 2012). In the case of BP- Rosneft joint venture, the Russian government provides the necessary resources for exploring the oil while British Petroleum provides the highly qualified professionals as well as the modest technology of mining oil (Chzan, 2013).There are increasing concerns over the fast depleting oil reserves that have called for attention to come up with ways to strategically manage the. National and International Oil Companies.
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