BP settles TNK dispute with Russians
British Petroleum and its billionaire Russian partners in Russian oil company TNK have settled a long-running dispute. The deal includes removal of CEO Robert Dudley as CEO. Brett Neely has more.
Under deal between Russia and BP-TNK, Robert Dudley will no longer be head of Russian-British oil firm TNK-BP. (Alexey Sazonov/AFP/Getty Images)
More on Oil, Mergers/Acquisitions, Russia
TEXT OF STORY
Renita Jablonski: Word from Russia this morning that British oil giant BP has ended a long-running dispute over control of the country's third largest oil company, TNK. BP co-owns TNK with a group of Russian oligarchs. The oligarchs wanted more power in the partnership. And as Brett Neely reports, they seem to have won.
Brett Neely: BP could have lost its lucrative 50 percent stake in TNK, which supplies 25 percent of the oil and gas BP pumps. Although BP had the right to appoint TNK's CEO, Robert Dudley, the Russian billionaires wanted him out. In July Dudley had to flee Russia because of what he called official harassment from the government. In the deal signed today, BP has agreed to remove Dudley.
He'll be replaced by "a Russian speaking candidate with extensive Russian business experience." BP and its partners also agreed to add three independent directors to TNK's board and sell shares in an IPO. News of the deal sent BP shares up more than 3.5 percent in morning trading.
In Berlin, I'm Brett Neely for Marketplace.
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From Moscow, 07/28/2009
This dispute erupted again soon after this article was posted. The latest is that it is now resolved again - for now! BP-TNK Dispute Resolved
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