Open

Coming up

Don't miss

Replay


LATEST SHOWS

FASHION

Paris, Haute Couture Fall/Winter 2014-2015.

Read more

REPORTERS

Exclusive: an unlikely victim of the 'War on Terror'

Read more

AFRICA NEWS

2014-07-11 21:47 AFRICA NEWS

Read more

MEDIAWATCH

Finally, a good use for new app "Yo"

Read more

THE WORLD THIS WEEK

The World This Week - 11 July 2014 (part 2)

Read more

THE WORLD THIS WEEK

The World This Week - 11 July 2014

Read more

#THE 51%

Sweden: A Feminist's Paradise?

Read more

FRANCE IN FOCUS

Politics: parties under pressure

Read more

FOCUS

In Burma, the rise of radical Buddhism

Read more

  • UN Security Council calls for Israeli-Palestinian ceasefire

    Read more

  • Holland beat hosts Brazil 3-0 to finish third in World Cup

    Read more

  • Afghan presidential candidates agree to full vote audit, Kerry says

    Read more

  • France’s Kadri wins eighth stage at Tour de France

    Read more

  • Legal challenge to French mayor’s ban of Muslim hijab on beach

    Read more

  • Last of the Ramones, Tommy Ramone, dies aged 62

    Read more

  • Video: Outrage in wake of deadly Casablanca buildings collapse

    Read more

  • Iraqi forces ‘executed prisoners in reprisal’ for ISIS killings

    Read more

  • Ukraine promises retaliation after rebel assault

    Read more

  • Putin revives old Cuban flame and eyes Latin American minerals

    Read more

  • Amazon snubs French free delivery ban with one-cent charge

    Read more

  • Cleveland's NBA fans hail 'return of king' LeBron James

    Read more

  • Exclusive: an unlikely victim of the 'War on Terror'

    Read more

  • Magnitude 6.8 quake, small tsunami hit east Japan

    Read more

  • Suspect in Brussels Jewish Museum shooting drops extradition appeal

    Read more

BP recalls all remaining TNK-BP staff in Russia

©

Latest update : 2008-07-23

Amid ongoing uncertainty over Russian authorities granting a work visa for TNK-BP CEO Robert Dudley, British energy firm BP has announced it has now withdrawn all its staff sent to Russia to work for the joint venture.

British energy giant BP said Tuesday it had recalled all 148 staff sent to Russia to work for its TNK-BP venture amid ongoing Russian attempts to end foreign control of major energy assets.

"BP announced today (Tuesday) that it was withdrawing 60 remaining technical specialists, formerly assigned to TNK-BP, from Russia," the company said in a statement.

"All 148 technical experts, who have been instrumental in making TNK-BP one of Russia's best performing companies, have now been withdrawn to be redeployed in BP's businesses globally."

A spokesman said BP pulled out 88 of its seconded staff during the past month.

"Those people have, due to court actions and injunctions, been prevented from working for TNK-BP since March," a company spokesman said.

"We have no confidence that this situation will be resolved in the near future and therefore we have taken the decision to redeploy those staff elsewhere in BP where we can benefit from them greatly."

TNK-BP, formed in 2003, is a 50-50 venture between BP and a Russian consortium that comprises Alfa Group, Access Industries and Renova.

The Russian side argues that BP is treating TNK-BP as a subsidiary and obstructing its overseas expansion.

BP's chairman Peter Sutherland has in turn accused its Russian partners of the "corporate raiding activities prevalent in Russia in the 1990s" following the fall of communism.

The dispute over TNK-BP, which accounts for a quarter of BP's global oil output, is regarded by oil industry experts as a crucial litmus test for Russia's foreign investment climate.

The BP spokesman added Tuesday that the recalled staff were experts in the fields of drilling, reservoir management and project planning.

"These are the people who over the past five years have brought BP's international expertise to bear on TNK-BP's assets and have played a huge part in enabling TNK-BP to deliver the superior results that it has done.

"This expertise, which TNK-BP has greatly benefited from, will now be unavailable to TNK-BP."

The news comes amid an ongoing wrangle over Russian authorities granting a work visa for TNK-BP chief executive Robert Dudley.

The Russian joint venture partners have accused BP of arrogance and called for Dudley's dismissal.

The crisis is a major problem for BP because the venture accounts for such a large part of the oil giant's global output and executives have warned the row is tearing the multi-billion dollar company apart.

"We are taking this action reluctantly," said BP executive vice president Lamar Mckay in Tuesday's statement.

"These technical experts have played a huge part in making TNK-BP one of Russia's most successful oil companies in the past few years. Since it was formed in August 2003, the company's oil output has grown by an annual average of 5.8 percent.

"It has also paid some 70 billion dollars (44 billion euros) in taxes and duties as well as 20 billion dollars in dividends to its shareholders," Mckay said.

Moscow opened up the energy sector in the 1990s, seeking outside help to revive an industry crumbling owing to bad management and low investment.

However, in recent years, Russian authorities have moved to secure greater control of their prized energy assets as the cost of oil and gas has soared.

In 2006, BP's Anglo-Dutch energy rival Royal Dutch Shell was pressured by Moscow into selling a major stake in a massive project on the far eastern island of Sakhalin to state-controlled gas giant Gazprom.

Date created : 2008-07-22

Comments

COMMENT(S)