The news source reported that the latest feud between BP and its partners in TNK-BP is causing alarm to investors who are concerned about the joint venture, which accounts for 25% of BP’s global production and 20% of its reserves.
This follows the Russian shareholders’ decision to sue BP for refusing to grant them more control in the venture. This action, according to the British oil major’s CEO, Peter Sutherland, is aimed at securing control of TNK-BP.
Industry speculation is rife that a major Russian state-owned concern, such as Gazprom, is trying to muscle its way into the venture, according to the news source.
Mr Sutherland, as quoted by Reuters, said: This is just a return to the corporate raiding activities that were prevalent in Russia in the 1990s. Prime Minister Vladimir Putin has referred to these tactics as relics of the 1990s, but unfortunately our partners continue to use them. The leaders of the country seem unwilling or unable to step in and stop them. This is bad for us, bad for the company and of course very bad for Russia.
The Russian partners, Viktor Vekselberg and Mikhail Fridman, have said that BP CEO’s comments are counter-productive and offensive to the Russian leadership. The partners are seeking to bring the legal challenge to an international arbitration court in Sweden and also Russia.
