Tensions rise as CEO of TNK-BP quits
The Chief Executive Officer (CEO) of Russia's third-largest oil producer, TNK-BP, resigned on Monday, with sources citing a breakdown in the relationship between BP and its joint venture partner, AAR.
The Chief Executive Officer (CEO) of Russia's third-largest oil producer, TNK-BP, resigned on Monday, with sources citing a breakdown in the relationship between BP and its joint venture partner, AAR.
In a short statement, TNK-BP said that Mikhail Fridman has resigned from the group and his departure will take effect in 30 days' time.
Alfa-Access-Renova, otherwise known as AAR, is a consortium of Russian investors which owns 50% in TNK-BP, the oil giant set up in 2003 between itself and British firm BP.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
However, over its near 10-year history, tensions have arisen between the two sides, notably when the Russian partners blocked BP's proposed tie-up with Rosneft in 2011.
Fridman's resignation "represents a further breakdown in the relationship between TNK-BP's shareholders," one source close to AAR was reported to have said on Monday, adding that AAR has lost trust in the British firm.
People close with the company said that Fridman's move could be a possible attempt to distance himself from TNK-BP in anticipation of a new round of conflict, according to the Wall Street Journal.
After having initially started the day strongly, shares in 50% owner BP slipped into the red by the afternoon, trading 1.68% lower at 400.5p by 15:49.
TNK-BP will be subsequently managed by a group of executives who hold powers of attorney related to their areas of responsibility.
"AAR shareholders German Khan and Victor Vekselberg remain with the business as Executive Directors and members of the management board," the statement said.
BC
-
Buying a property is cheaper than renting again – how much could you save?
News Zoopla research shows it is now 8% cheaper to buy than rent. We reveal the places where you can save more by getting on the property ladder.
By Marc Shoffman Published
-
Is now a good time to invest in India?
Should you invest in India? Its market has stood out of the emerging market pack, helped by a growing pool of domestic investors.
By Cris Sholto Heaton Published