BP-TNK faces fresh call for British chief executive to resign
Thursday, 3 July 2008
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Just as restrictions on visa applications for BP-TNK's non-Russian senior management appeared to be easing yesterday, one of the joint venture's oligarch shareholders stepped up the pressure again with renewed calls for the dismissal of the British chief executive.
The Russian government's Federal Migration Service has now accepted 49 visa applications, including those from the joint venture's senior management, after reports that key staff could be forced to leave the country when their permits expire at the end of the month. But the problems are not entirely resolved. "We are please they have accepted some applications but this is just the first step and we are looking forward to the visas being approved and issued," a spokesman for BP said. "In the meantime, unless there are additional permits accepted and granted, at least half of the non-Russian staff will be ejected from Russia."
But apparent progress in one area was swiftly countered by troubles elsewhere. Viktor Vekselberg, an executive director of the joint venture and one of the four Russian oligarchs whose AlfaAccessRenova (AAR) investment vehicle owns 50 per cent of the company, has called for an extraordinary general meeting of one of BP-TNK's subsidiary boards to cancel the employment of Robert Dudley, the chief executive, and nominate a replacement.
The fight between BP and its Russian partners – over what is one of the world's top 10 oil companies – is becoming increasingly acrimonious and since January the company has been dogged by upheavals, including security service raids and accusations of industry espionage, as well as on-going visa problems and Mr Dudley's questioning by Russian officials over possible labour law violations.
AAR claims that BP-TNK is badly run, that it is constrained by its role as a BP subsidiary, and that it is not being allowed to make the most of significant international opportunities. Stan Polovets, the chief executive of AAR, said yesterday: "Our request to Mr Vekselberg to call an extraordinary meeting is based on serious concerns that Mr Dudley's actions are eroding value and the development of the company, while exposing TNK-BP and its shareholders to legal risk. We continue to believe that the underperformance of TNK-BP will continue unless the changes we have proposed are implemented, including the appointment of an independent chief executive."
But BP continued to give Mr Dudley its full support yesterday, and has consistently fought what it believes are its partners' attempts to wrest control. After AAR's threat to launch two separate lawsuits against the UK oil major last month, Peter Sutherland, BP chairman, branded the oligarchs as "corporate raiders" and called for the Russian President to step in to restore respect for the rule of law.
The EU's external affairs and trade commissioners have brought the row up with Moscow, and Gordon Brown is expected to raise it when he meets President Medvedev at the G8 summit in Japan.
