TNK-BP problems won't be fixed soon-board source

Oil major BP and its four billionaire partners in Russian joint venture TNK-BP appear no closer to resolving a conflict over management after a board meeting in Cyprus on Friday, sources told Reuters.

A source who attended the meeting of TNK-BP, a holding company which controls 95 percent of the listed Russian entity TNK-BP Holding , told Reuters the dispute between the rival shareholders about the future of Russia's No. 3 oil producer would not be decided soon.

This raised concerns among investors that the year-long struggle could be prolonged. The remaining 5 percent of TNK-BP Holding is owned by minority shareholders.

"I don't think soon. Not soon," the source said on condition of anonymity when asked if the dispute at TNK-BP would soon be resolved.

TNK-BP Holding, which pumps as much oil as Britain, has been wracked by a struggle between BP and its four Russia-connected partners over management control and future strategy. Investors are following the case for clues to the investment climate in Russia under President Dmitry Medvedev.

The quartet of billionaires, represented by the AAR consortium, want to fire the BP-backed chief executive of TNK-BP, Robert Dudley, whom they accuse of poor performance and favouritism toward BP.

BP says Dudley is acting in the interests of both groups of shareholders and accuses the Russians of an attempt to seize control of the venture, in which both sides control 50 percent. Analysts say the company has outperformed most of its Russian peers.


David Nicholas, a spokesman for BP, described the board meeting, which took place in the Cypriot Mediterranean port of Limassol, as business-like and cordial.

He declined to disclose details, saying the results of the meeting would be made public on Monday.

"The shareholders discussed the company's operations rather than focusing on differences," a second source close to consultations, who also asked not to be named, told Reuters.

The fact the meeting took place at all could be seen as a sign of progress: the Russia-connected shareholders, Mikhail Fridman, German Khan, Viktor Vekselberg and Len Blavatnik, failed to attend a previous meeting in Cyprus in May shortly after the two sides publicly aired their differences.

On that occasion, some of the Russian quartet flew in the previous evening for informal discussions but then decided to stay away from the formal board meeting

At Friday's meeting, AAR chief executive Stan Polovets told Reuters he was elected to the 10-man board of TNK-BP Ltd. He replaced Jean-Luc Vermeulen, a Russian-nominated independent director who resigned in May.

Each side has five board members and in the event of a deadlock, there is no casting vote.

TNK-BP is Russia's second-biggest foreign investment. Another key element in the dispute has been the Russian partners' determination to drastically cut the number of foreigners directly employed by, or seconded to, TNK-BP.

The Russian side says the foreigners are excessively expensive and are not needed in such great numbers, while BP-backed TNK-BP management say they provide much-needed expertise.

TNK-BP's Moscow-traded stock fell 1.4 percent to $2.07, compared with a 0.9 percent decline on the Russian Trading System .

Subscribe to Trend in Google News! Subscribe
Saudi Arabia appoints Al-Rabiah as new Hajj minister
Saudi Arabia appoints Al-Rabiah as new Hajj minister
Saudi Arabia to ease coronavirus curbs from Oct. 17
Saudi Arabia to ease coronavirus curbs from Oct. 17
Death toll climbs to seven following fatal gun battles in Beirut
Death toll climbs to seven following fatal gun battles in Beirut
Loading Bars
Earthquake hits southern Iran
Azerbaijan shares data on number of vaccinated citizens
Azerbaijan confirms 1,681 more COVID-19 cases, 675 recoveries
Azerbaijani President Ilham Aliyev signs decree on raising social payments
Iran reveals COVID-19 data for October 16
Uzbekistan to privatize public park in Tashkent
Muslims all together sympathetic with Azerbaijan - Palestinian ambassador
Iran's exports to Kazakhstan up
SOCAR Georgia Gas opens tender on pickup trucks through operating lease
Turkish president and German chancellor holding talks in Istanbul
Novak does not rule out recurrence of energy crisis in Europe, urges its prevention
Azerbaijani official talks victims of Armenian attacks on Tartar during Second Karabakh War
Centuries needed to revive nature of Azerbaijan's Karabakh - minister
Azerbaijan raises electricity and gas prices
Restoration work in Azerbaijan’s liberated territories show positive trend – Kyrgyz ambassador
Over past 25-30 years, no country independently conducted such large-scale reconstruction in post-conflict period - aide to Azerbaijani president
Armenia must take serious and positive steps to open communications - Azerbaijani president's assistant (Exclusive)
Azerbaijan looks to sign document on demining liberated territories with France
Azerbaijan's Air Defense Units carrying out combat firing exercises (VIDEO)
Azerbaijan's Karabakh to be famous for its "smart cities" and agricultural products - Turkish ambassador
Iran boosts exports to Russia
Russia registers over 1,000 coronavirus deaths in 24 hours first since pandemic starts
Kazakh energy minister names reasons for shutdown of Pavlodar refinery
Iran sees increase in trade turnover with EAEU member states
Representatives of diplomatic corps view restoration work in liberated territories of Azerbaijan (PHOTO)
First plane with UN humanitarian aid for Afghanistan arrives in Uzbekistan
Iran records increase in load/unload operations in Amirabad port
Georgia and US to discuss co-op in Black Sea
Fuzuli Airport Granted International Status and Assigned IATA Code
Uzbekistan to fund startups in various sectors
U.S. lawmaker blames Boeing leaders for culture that led to crashes
Turkmenistan to purchase agricultural machinery from foreign manufacturers
Iran Energy Exchange shares data on sales of Iran’s Jam Petrochemical Company
Azerbaijan names gymnasts to perform at World Championships in Japan
During former occupation of Sugovushan, Armenia deprived vast lands of water - aide to Azerbaijani president (PHOTO)
Volume of loaded and unloaded cargo in Iran’s Noshahr Port down
Georgia shares data on COVID-19 cases for October 16
Kazakhstan boosts trade with Turkmenistan over 8M2021
Exports of steel manufacturers in Iran increase
Georgia, EU, and Turkey enter into "diagonal cumulation" agreement
Azerbaijani sees increase in oil prices
Iran raises ceiling on housing loans
Uzbekistan’s FEZ creates good basis for deepening co-op with Azerbaijan
Turkmenistan’s private enterprise eyes building dry cargo vessel
Trade turnover between Russia, US may hit record this year, says Deputy PM Overchuk
Iran to launch several shipping lines to Russia, Kazakhstan
Iran looks to improve transportation of goods from Khuzestan Province
Russia’s Korona Pay eyes expanding money transfers via Azerbaijan's mobile banking apps
Gas prices in Europe to remain high over next 6 months
Iranian currency rates for October 16
Turkmenistan's electric potential rises after commissioning new capacious power plants
Iran to increase fuel production
UK MP killing was terrorist incident, Met Police say
Representatives of diplomatic corps in Azerbaijan begin visit to Sugovushan
Czech Republic eyes to support improvement of Georgian air transport infrastructure
1,900 more COVID-19 cases reported in Kazakhstan
Biden says those who refuse to testify in Jan 6 probe should be prosecuted
ISIS claims responsibility for mosque attack in Afghan city of Kandahar
Fully vaccinated foreign visitors can enter U.S. starting on Nov. 8
China's Shenzhou-13 crewed spaceship docks with space station module
UK records more than 40,000 COVID cases for third day in a row
Biden says Clinton will be released ‘shortly’ from California hospital
Amazon-owned Twitch says source code exposed in last week's data breach
Israel's annual inflation up 2.5 pct, highest in nearly decade
Africa's COVID-19 cases surpass 8.41 mln: Africa CDC
US shares specific data on cybercrime with Russia, awaits its actions, White House says
Saudi Arabia appoints Al-Rabiah as new Hajj minister
Chronicles of Victory: President Ilham Aliyev interviewed by Turkish A Haber TV channel on October 16, 2020 (PHOTO/VIDEO)
Chronicles of Victory: October 16, 2020
Czech PM Babis pledges smooth power handover to opposition
UK MP dies after being stabbed at constituency meeting
China’s Shenzhou-13 manned spacecraft successfully reach orbit
Four migrants dead, 21 missing off Spanish coast
FIA approves schedule for Azerbaijan Grand Prix in 2022
COVID-19 kills 197 more Iranians over past 24 hours
Georgian FM meets Slovenian counterpart
Armenia trying to prepare ground for new provocations against Azerbaijan by spreading fake information - MoD
Azerbaijani FM discusses mine threat in liberated territories with French CNEMA delegates (PHOTO)
Azerbaijan lifts flight restrictions for number of countries
Azerbaijani President signs law "On Independence Day"
EBRD to allocate loan to Turkmen beverage company
Azerbaijan records decline in fixed capital revenues for 9M2021
Turkmenistan, WB talk new areas of co-op
Uzbek-Korean JV announces tender to buy clarifier
Gasoline prices in Georgia increase
Money transfers to Azerbaijan via Golden Crown service grow for 9M2021
Iran looking to develop renewable energy - SATBA
Azerbaijani MoD discusses mine clearing in liberated territories with French delegation (PHOTO)
Iran eyeing increase in trade with Spain
Export-oriented local Georgian company to get benefits within USAID program
Saudi Arabia to ease coronavirus curbs from Oct. 17
Russia, Venezuela developing secured messenger — Rostec
Kazatomprom to look for new ways to bolster nuclear energy for peaceful purposes
Turkmenistan discloses area allotted for sowing winter barley in Dashoguz region
Agreement with Azerbaijan on additional gas supplies aimed at ensuring Turkey's gas reserves – Erdogan
First container train on its way to Azerbaijan's Karabakh (PHOTO/VIDEO)
Uzbekneftegaz receives gas flow from well at Khojikazgan field
Kazakhstan to exempt Caspian oil exports from customs duties
Kazakhstan unveils data on trade with other EAEU states
Volume of financial assets of non-financial corporations in Georgia increases
All news