BP's Russian partners in its TNK-BP joint venture turned up the heat on the British company to scrap or modify a rival tie-up with state oil group Rosneft by resolving to block a $1.8 billion dividend. Monday's move could limit BP's scope to up its own dividend in the future and may overshadow its results on Tuesday, when BP is expected to reinstate its payout, which it cancelled at the height of last summer's Gulf of Mexico oil spill.
The AAR consortium, which owns the other half of TNK-BP, is fighting to stop BP's proposed joint venture with Russian rival Rosneft after the two announced an Arctic exploration deal earlier this month. AAR is seeking a court injunction against it in London on Tuesday in a bid to maintain TNK-BP as the prime vehicle of BP's operations in Russia and Ukraine.
BP says it needs its partners' approval to form the planned Rosneft joint venture and wants to resolve the dispute amicably. AAR's board decided on Monday to oppose the payment of a fourth-quarter dividend when it is reviewed by the TNK-BP board. A meeting is scheduled for February 18 but company sources said one may be called sooner at the request of the Russian shareholders.
Comments
Comments are closed for this article.