TNK in threat to withhold BP payment
Source: Agencies |
February 1, 2011, Tuesday
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Print Edition
Print Edition
A row over BP's dividend looks likely to overshadow the British company's full-year results as Russian shareholders in its TNK joint venture convene yesterday to consider withholding the US$1.8 billion payment.
Shareholders in the AAR consortium, which owns the other half of BP's TNK-BP venture, want TNK-BP to remain the prime vehicle of BP's operations in Russia and Ukraine and are seeking a court injunction to halt BP's deal with Rosneft.
A source close to the situation told Reuters that AAR's board was due to convene an extraordinary meeting yesterday to consider withholding the payment of TNK-BP's fourth quarter dividend, due in February.
The source said the board would consider TNK-BP's uncertain prospects in the light of increased competition from Rosneft and the possible need to enhance international expansion.
BP wants to enter "fast-track arbitration" to settle a dispute with Russian shareholders in its TNK-BP joint venture over the British company's shares and exploration deal with Rosneft.
"Under the shareholder agreements, the process for settling disputes if they can't be settled within the shareholders is to go to independent arbitration in Sweden," a BP spokesman said.
He said that on Friday BP wrote to the chief executive of TNK-BP, Mikhail Fridman, requesting this arbitration.
"If both sides agree to fast track, then that can go ahead quickly. If both sides do not agree, it can still go to arbitration, but it can take much longer," he said.
AAR's court case will be heard today - the day Rosneft and BP were both due to announce full-year results.
The source also said AAR's lawyers had written to David Peattie, a BP representative on TNK's board, alleging he was in breach of his duties as a director of the joint venture because of his role in negotiations with Rosneft and that TNK-BP was starting legal proceedings against him.
BP would not comment.
Meanwhile, a report in The Observer newspaper cited sources close to the US Environmental Protection Agency (EPA) saying the US government was likely to reduce its estimate of the size of the gulf spill, cutting BP fines.
Shareholders in the AAR consortium, which owns the other half of BP's TNK-BP venture, want TNK-BP to remain the prime vehicle of BP's operations in Russia and Ukraine and are seeking a court injunction to halt BP's deal with Rosneft.
A source close to the situation told Reuters that AAR's board was due to convene an extraordinary meeting yesterday to consider withholding the payment of TNK-BP's fourth quarter dividend, due in February.
The source said the board would consider TNK-BP's uncertain prospects in the light of increased competition from Rosneft and the possible need to enhance international expansion.
BP wants to enter "fast-track arbitration" to settle a dispute with Russian shareholders in its TNK-BP joint venture over the British company's shares and exploration deal with Rosneft.
"Under the shareholder agreements, the process for settling disputes if they can't be settled within the shareholders is to go to independent arbitration in Sweden," a BP spokesman said.
He said that on Friday BP wrote to the chief executive of TNK-BP, Mikhail Fridman, requesting this arbitration.
"If both sides agree to fast track, then that can go ahead quickly. If both sides do not agree, it can still go to arbitration, but it can take much longer," he said.
AAR's court case will be heard today - the day Rosneft and BP were both due to announce full-year results.
The source also said AAR's lawyers had written to David Peattie, a BP representative on TNK's board, alleging he was in breach of his duties as a director of the joint venture because of his role in negotiations with Rosneft and that TNK-BP was starting legal proceedings against him.
BP would not comment.
Meanwhile, a report in The Observer newspaper cited sources close to the US Environmental Protection Agency (EPA) saying the US government was likely to reduce its estimate of the size of the gulf spill, cutting BP fines.
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