September 4, 2008
Oil Giant TNK-BP Settles in-House Feud
Russian and British stakeholders in TNK-BP have agreed to restructure leadership to settle claims the company was run with a foreign bias, the company said.
The deal includes replacing Chief Executive Officer Robert Dudley, a former BP executive, with an independent candidate who speaks Russian, The Wall Street Journal reported Thursday.
The conflict between Russian and British interests led to a series of government regulator interventions, including a recent court decision to disqualify Dudley from his CEO position because of minor paperwork violations, the Journal reported.
Dudley had been forced to leave Russia in July and, for a time, had been running the company from an undisclosed location.
In the deal, BP will maintain ownership of 50 percent of the company, which accounts for a quarter of its oil production and a fifth of its reserves, the Journal reported.
While the deal looks to favor Russian interests, "The more of a Russian complexion this deal has the better," an undisclosed source told the Journal.