labels: Oil & gas
TNK-BP's Russian chairman asks British CEO to resign news
24 June 2008

Mumbai: The Russian chairman of BP's joint venture TNK-BP, Mikhail Fridman, has called on the firm's chief executive Robert Dudley to step down after a Russian labour regulator fined Dudley and the oil company 3,000 rubles ($125) and 40,000 rubles ($1,650), respectively, for violations of rules.

Robert Dudley, CEO, TNK-BPRussia's labour inspectorate said the penalty could force its chief executive Robert Dudley to quit the post, but, Mikhail Malyuga of the Moscow city labor inspectorate said the company had been given a month to "rectify the situation."

Dudley had also been questioned by Russian security agencies for letting in foreigners into the oil company's office premises without any safeguards.

BP and its Russian partners in the 50:50 joint venture, TNK-BP, have been engaged in a long-running battle over strategy and the row has become increasingly acrimonious with Fridman calling for ouster of the JV's British CEO. (See: BP, Russian partners locked in battle for control over TNK-BP

Fridman said the actions of the Russian police, who pulled in Dudley for questioning, are only routine practice in Russia.

Fridman has been complaining for long that TNK-BP CEO Robert Dudley was concerned only with BP's interests and this, he said, was "unacceptable".

BP, however, denied this allegation and said said Dudley represented the interests of all shareholders of TNK-BP and it had full confidence in the  chief executive.

TNK-BP is Russia's third-biggest oil producer and accounts for a quarter of BP's worldwide oil production.

Western oil companies, eager to gain access to Russia's vast oil and gas reserves, are increasing apprehensive of the government wresting control of the oil assets from foreign companies.

Tension between BP and its Russian partners, including Fridman, in TNK-BP has been mounting over its management structure and strategy.

Mikhail Fridman, chairman, TNK-BPMatters came to a boil after Russian security services raided the offices of BP and the joint venture TNK-BP in Moscow. BP blamed the raids on its Russian partners even as Fridman averred that the Kremlin was not in any way trying to force BP out of Russia.

Friedman said the Russian shareholder group, AAR, wants independent directors on the board of TNK-BP rather than BP managing the 50:50 joint venture through its representatives.

Having a BP man run the firm, he said, "was not positive for the development of the company".

"Fifty per cent shareholders don't trust him and I, as chairman, ask him to step down from his position,'' Fridman was quoted as saying.

He also offered to back any other candidate, not necessarily Russian,  but with experience of how to work in Russia.


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TNK-BP's Russian chairman asks British CEO to resign