BP Considering Selling TNK-BP Stake

BP has said that it is considering selling its stake in TNK-BP following a number of unsolicited inquires into the sale of the asset.

While there is no certainty as of yet that the stake will be sold, BP says it has notified partner Alfa Access Renova (AAR) of the potential sale of the stake. The joint venture, which was set up in 2003 to explore for oil and gas in Russia, had an initial cost of $7 billion. BP and AAR each hold an equal 50 per cent stake in the project.

Though BP has not indicated that it has made any definitive decision on whether to sell the 50 per cent stake, it says it has to consider the offers in light of "its commitment to maximising shareholder value."

The consideration of these unsolicited offers may also be considered in light of recent difficulties between the two shareholders in the company.

Last week saw TNK-BP cancelling a board meeting due to a lack of a quorum (the minimum number needed to attend a meeting). The drop in attendance numbers comes a result of the resignation of two independent directors, Gerhard Schröder, the former German chancellor, and James Leng, ex-chairman of Rio Tinto, last year. These directors have yet to be replaced.

This week, also saw the resignation of the joint venture's chief executive, Mikhail Fridman, which AFP reported was due to a "breakdown in governance at TNK-BP."

Following the cancelling of the board meeting, the Board of Management was also forced to postpone a scheduled the declaration and distribution of first-quarter dividends until the Board once more has a full complement of directors.