Oil Analyst: 'BP is starting to show its cards'

BP says it is resuming dividend payments for the first time since the devastating oil spill in the Gulf of Mexico last April but they will be half their previous level.

The company lost £3.1bn compared with a profit of more than £8.5bn the previous year. The loss is mainly due to the £25bn that BP has set aside to cover the costs of the spill.

Nick McGregor an oil analyst from the stockbrokers Redmayne Bentley, says BP's deal with Russian oil giant Rosneft is an indication of the company's future strategy.