OIL major BP said yesterday it had finalised the revision of the shareholder agreement with its Russian joint-venture partners in Russia’s third-largest oil company TNK-BP.
BP said the agreement largely followed the preliminary deal outlined in September but it also confirmed the management roles of two of BP’s oligarch partners, at least one of whom had been expected to step down. BP said the deal had not made significant new concessions, and that the board was balanced.
The British company said the agreement paved the way for the next phase in the development of TNK-BP.
It added that it was aimed at improving the balance of interests between 50/50 owners BP and Alfa Access-Renova (AAR), and focusing the business more explicitly on value growth.
Changes include governance adjustments such as replacing the evenly-balanced main board structure with four representatives each from BP and AAR plus three independent directors agreed by both sides.
BP will continue to nominate the chief executive, subject to main board approval, and AAR will continue to appoint the chairman. The new board members are expected to be announced shortly.
TNK-BP posted record profits of £3.13billion in the first half of 2008, more than double profits a year earlier, on revenue of £18.86billion, up from £11.33billion.