TNK-BP, the joint venture between the British oil firm BP and Russian investors, has expressed satisfaction at the resolution of a dispute between its shareholders which should draw a line under many months of acrimonious infighting within the firm's board.
After a long dispute about who should control the firm, it was agreed on Thursday that two directors from the board of ten - one from BP and the other from the AAR investment vehicle owned by the Russian oligarchs in the joint venture - would step down and be replaced by three independents.
Robert Dudley, the company's controversial chief executive, will also go. His replacement will be chosen by BP, but the new chief executive, who will be in place by the end of the year, will have to be able to speak fluent Russian and have experience of the country's business environment.
The dispute over control of the joint venture took on new proportions in July after Dudley left the country to run the company from a secret European location, citing harassment by the country's immigration and tax authorities - a move that the venture's Russian investors warned could have had serious tax implications for the company.
The outcome of the dispute is also being seen as a key litmus test of openness in the Russian business environment, especially in the energy sector with the Kremlin keen to exercise more influence over private business decisions. The company itself had also been subject to numerous tax inspections and bills for back taxes.
"Final agreement between shareholders will enable the management and staff of TNK-BP to focus on the way forward for the company free of this significant distraction and the uncertainties around the company’s business plan and capital expenditure," BP-TNK announced in a statement on Thursday.
"TNK-BP remains a strong and competitive Russian oil and gas company having contributed more than USD80 billion in taxes, duties and excise to the Russian government in the five years since its inception," it added.
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