One of the AAR consortium’s key demands met: TNK-BP CEO tenders resignation
The powerful consortium comprising Russian major corporations, Alfa Group, Access Industries and Renova Holding, commonly referred to as ‘AAR’, which are affiliated with Russian billionaires, at last, has a special reason for joy in the positive development of events at TNK-BP, its oil joint venture with British Petroleum (BP). After months of open corporate wars, under-table intrigues and manipulations, as well as mutual accusations/counteraccusations and threats of full litigations to right wrongs — real and imagined, made public at high-profile conferences both in and outside Russia, Robert Dudley, the company’s CEO that has become one of the worst bones of contention between the Russian and their British partners, has finally decided to leave the company.
The Russian owners of the AAR consortium, notably, Mikhail Fridman (Alfa Group), Leonard Blavatnik (Access Industries) and Viktor Vekselberg (Renova), have repeatedly accused Dudley, amongst other ‘capital corporate violations’, of biased protection of BP’s interests at the detriment of their interests and the company’s strategic development plans, especially in foreign countries, where the Russian joint venture could potentially become a serious competitor to British global oil giant.
For several months, the Russians have repeatedly called for the resignation of Dudley as one of the key conditions for resolving all the differences between the company’s key shareholders. The Russians’ dream or desire finally became a reality on December 1 as the CEO finally tendered his resignation. “TNK-BP has received the resignation of its founding president and CEO, [Robert] Dudley, in accordance with the Memorandum of Understanding (MOU) reached between AAR and BP in early September. Dudley’s resignation is effective from December 1,” the management of the oil joint venture said in an official statement released on December 1. “I depart TNK-BP after more than five challenging and immensely satisfying years building and leading this unique and progressive Russian oil major”, Dudley said. “I wish the new management team every success in continuing the company’s development.”
The aforementioned MoU clearly defined ways of resolving all the existing differences between the Russian and British partners and also highlighted the types of changes that need be made to the company’s charter documentations, including those covering top management issues, which will fully help normalize the strained relationships between the partners in their overall management of this joint venture now and in the future.
Acting on the unanimous decision on the new chairman of the Management Board of TNK-BP Management taken at the November 28 TNK-BP Board of Directors meeting, the company shareholders appointed Tim Summers interim CEO/Board Chairman until the appointment and commencement of a new non-affiliated CEO as agreed by the company shareholders. “It is vital that the transition is effected smoothly and seamlessly. I will focus on closing out our strong performance in 2008 and in setting our business plan for next year in this difficult business environment,” Summers, the interim CEO, said.
Meanwhile, the appointment of a new non-affiliated CEO is currently being attended to by the company’s shareholders as are changes to the charters and BoDs of TNK-BP Holding and TNK-BP Management, together with attendant ancillary matters, the company said in an official statement.
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