Russia's TNK-BP in surprise Venezuelan deal

Int’l Relations

BP's Russian oil joint venture TNK-BP will sign its first deal with Venezuela after months of dispute between BP and its Russian partners over its expansion abroad.

BP and its partners in TNK-BP, four Russian-connected billionaires, have been locked in a dispute over strategy and management tactics, with the Russian side accusing BP of limiting TNK-BP's expansion abroad, including in Venezuela.

BP argues the projects proposed by its partners were not economically attractive.

The Kremlin source said TNK-BP, alongside oil major LUKOIL and gas giant Gazprom, will sign new energy deals with Venezuela during President Hugo Chavez's visit to Moscow. He gave no details.

“In a clear sign of rising cooperation in the energy sphere Gazprom, LUKOIL and TNK-BP and Venezuela's PDVSA are planning to sign deals during the visit,” the source said ahead of Chavez's meeting with Russian President Dmitry Medvedev.

One of the top Russian co-owners, German Khan, will sign documents on behalf of TNK-BP.

One source close to TNK-BP said the signing would not have been possible without clearance from BP.

“I would definitely read it as a first step toward a compromise,” the source said.

The other source played it down, saying the deal with Venezuela was unrelated to the dispute between the shareholders and its main aim was to make Chavez's visit a success. (Reuters)

ADVERTISEMENT

Reforms to raise productivity would strengthen recovery - OE... Analysis

Reforms to raise productivity would strengthen recovery - OE...

Meeting called to address Pegasus spyware lacks quorum  Parliament

Meeting called to address Pegasus spyware lacks quorum 

Skanska commercial dev unit names new EVP of operations Hung... Appointments

Skanska commercial dev unit names new EVP of operations Hung...

Zsa Zsa Gabor's ashes buried in Budapest City

Zsa Zsa Gabor's ashes buried in Budapest

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.