tnk-bp

AAR argues that TNK-BP is meant to enjoy an exclusive right to develop any further deals in Russia to which BP might be a party.

Consider the case of BP (BP), which thought its partnership with a group of Russian billionaires, TNK-BP, was a textbook joint venture.

BP has the right to nominate three directors to the board of TNK-BP and Mr Hayward would be able to live in Britain while serving on it.

BP might be reluctant to countenance Mr. Vekselberg in the role of TNK-BP chief executive, even on an interim basis.

As it is, TNK-BP accounts for a fifth of BP's production, but only a tenth of its profits.

BP Chief Executive Bob Dudley said he is 'rock steady' in his commitment to joint venture TNK-BP Ltd.

A potential candidate for that role is Viktor Vekselberg, who heads TNK-BP's natural-gas business and owns the Renova industrial group.

At a hearing on the subject in Moscow last week, two different delegations showed up, both claiming to represent TNK-BP.

The firm's attempt to renew visas for its foreign staff has shown how uncertain the answer is.

Stan Polovets, AAR's boss, says that BP is running TNK-BP for its own benefit; he is determined to install more neutral management.

Vladimir Putin, the prime minister, and Mr Sechin are angry that they were not fully informed about the agreement with TNK-BP.

He may be offered a non-executive role on the board of BP's Russian joint venture, TNK-BP, Sky News reported yesterday.

This man, constructing an oil feeder pipeline in western Siberia, is one of some 71, 000 employees of the Russian oil giant TNK-BP.

BP has also sold operations in Vietnam and Venezuela to its Russian joint venture partner TNK-BP for $1. 8 billion.

He has, however, been thrown into an urgent strategic problem by the increasingly bitter row with BP's Russian partners in TNK-BP.

BP won the right to nominate an independent, Russian-speaking candidate to run TNK-BP as part of a peace settlement last year.

The move adds to the pressure on BP amid a battle for control of TNK-BP between its British and Russian shareholders.

That row has now been smoothed over and BP has made pots of money from TNK-BP.

Russian authorities also raided the offices of TNK-BP Wednesday, seizing documents and files.

Mr Dudley's new strategy has also started a fight with the formidable oligarchs in the AAR consortium, which owns 50 per cent of TNK-BP.

However, he denies any such link in the case of TNK-BP.

The appointment requires approval from Russian shareholders and the TNK-BP board.

TNK-BP has said this target would be impossible to meet.

Perhaps Mr Dudley gambled that getting into bed with Rosneft would silence TNK-BP.

TNK-BP stood to lose both the licence and its investment.

Buying AAR's stake in TNK-BP could cost BP (and Rosneft) $30bn: a stretch, given BP's financial commitments in the US.

BP is facing a battle for control of TNK-BP, its joint venture owned 50: 50 with the Alfa-Access-Renova group of Russian tycoons.

In addition, Gazprom gave TNK-BP an option to buy back 25% of the field at a market price, but only if BP fulfils its part of the deal.

Oil companies such as Royal Dutch Shell and TNK-BP, in particular, have faced pressure over their Russian investments.

TNK-BP's Russian owners say they are not looking to sell.