BP (BP) Sued for $10 Billion by TNK-BP

Citing sources close to TNK-BP, the Financial Times said BP (NYSE:BP) is being sued by the company for damages of up to $10 billion.

TNK-BP management said, "TNK-BP is preparing documents with minority shareholders in TNK-BP Holding for lawsuits against BP for not informing us of the opportunity with Rosneft and for not winning the agreement of the shareholders," according to the Times article.

The management claims the company has lost opportunities to explore in the Russian arctic because of the actions of BP.

In another recent blow to the oil giant, a proposed $16 billion share-swap with Russian state-run oil company Rosneft was ruled against when arbitrators upheld an interim injunction in the matter.

BP closed Monday at $46.67, falling $0.07, or 0.15 percent.

BP (BP), TNK-BP Battle No Big Deal Says Russia

Russia's investment climate is already so bad that even a battle between BP and its shareholders at Anglo-Russian TNK-BP will not do anything to influence experienced investors, according to a senior Kremlin aide.

BP (NYSE:BP) was blocked from expanding its presence in Russia through a $16 billion share swap and joint exploration plans with Russian state giant Rosneft (ROSN.MM) by a Stockholm arbitration panel last week, after TNK-BP's (TNBP.MM) billionaire partners took the case to court.

The move has led to concerns that other energy firms looking to extend their reach may face similar problems.

"Right now our investment climate is so bad that it won't be affected," President Dmitry Medvedev's top economic aide, Arkady Dvorkovich, told reporters.

He said he was hopeful that the dispute would be settled, and when asked what the Kremlin's advice was, Dvorkovich responded: "Find a solution that is acceptable to both sides. I think they'll find one."




Source

BP (BP) Crunched on Possible Manslaughter Charges

Shares of BP (NYSE:BP) are taking a hit today on news managers at the company may be pursued by prosecutors with charges of manslaughter.

Also weighing on the stock is the recent battle with its Russian billionaire partners in TNK-BP and its attempt to partner with Rosneft.

In regard to that situation, brokerage Collins Stewart said its lowering its rating on the company from "Hold" to "Sell."

The manslaughter charges are being talked about by prosecutors from the U.S. now, but officials wouldn't confirm one way or the other whether it is under consideration or not, as sources close to the matter who didn't want to be identified revealed the possible scenario of criminal charges.

Most of that will be determined by whether or not the company is deemed "grossly negligent" in the accident. If they are, not only would that open the door for possible criminal charges, but also for massive fines.

BP was trading at $44.91, down $1.13, or 2.45 percent, as of 11:38 AM EDT.

Russian Billionaires Win BP (BP), Rosneft Share-Swap Battle

The share swap deal between BP (NYSE:BP) and OAO Rosneft was blocked by Russian billionaires who had fought against the deal.

BP said in a statement it was disappointed by the outcome of the tribunal and that it would look to find a way to “resolve its differences” with the Russian billionaire partners in its TNK-BP joint venture. It will also apply for a ruling as to whether the share swap can proceed by itself.

BP’s partners, represented by the AAR group, claim the right for TNK-BP to pursue new opportunities in Russia on behalf of the London-based oil company. Last month, they won a court injunction to delay the deal.

The ruling is a setback for BP’s efforts to exploit one of the largest untapped oil troves. The January agreement with Russia’s state-owned oil company was part of Chief Executive Officer Robert Dudley’s strategy to revive the U.K. producer after last year’s Gulf of Mexico oil spill last year.

BP closed Thursday at $46.81, gaining $0.58, or 1.25 percent.




Source

TNK-BP Wants Piece of BP (BP), or is it Rosneft?

In a move to take a stake in Rosneft, TNK-BP is looking to acquire a 5 percent stake in BP (NYSE:BP) which they would then turn around and swap with Rosneft for a 9 percent stake.

After all of that was completed, BP would end up with half of the 9 percent stake in Rosneft because of their 50 percent stake in TNK-BP.

There doesn't appear to be much chance of the dealing going through, assuming the approximate $8.16 billion could be raised by TNK-BP to make the deal, as it is expected to be opposed by the board of BP and would probably be rejected by Rosneft.

The positive on BP's side would be the cash infusion of $8.16 billion, which would help it in its quest to free up more cash, depending on what the current needs of the company are in light of liabilities connected to the Gulf oil spill.

Russians Believe BP (BP), Rosneft deal Will be Approved

Russia said they believe the deal they made with BP (NYSE:BP) via state-owned Rosneft will be allowed to go ahead after a review from an arbitration tribunal in London.

Billionaire shareholders of TNK-BP Holding, a 50/50 joint-venture between BP and the wealthy Russians, challenged the agreement between BP and Rosneft, arguing terms of their partnership demanded they be notified before BP entered into any deal with another business. They were held to the same requirements as well, assuming they are actually in the agreement.

Rosneft made the deal on the word of BP, which according to First Deputy Prime Minister Igor Shuvalov, the company had "received the necessary assurances from BP. All the rights created by this deal are duely protected by international private and contract law."

BP and Rosneft entered an agreement in January to partake in Arctic oil exploration via an joint venture, where each company took a share in the other's company.

Arbitrators will hold the next meeting in London in the latter part of February.

BP closed Wednesday at $47.30, gaining $0.25, or 0.53 percent.

BP (NYSE:BP) And Russia Entering Energy 'Cold War'?

There is no doubt the entirety of the story surrounding the battle between BP (NYSE:BP) and their Russian billionaire partners, who each own 50 percent of TNK-BP, has been told, as the situation, while tempered for the moment, appears to be still boiling underneath the surface.

It's unknown as to the real level of the conflict between the entities, as it isn't known what the actual issues are, other than the obvious irritation by the billionaires over BP attempting to deal with Russia's state-owned Rosneft.

One important narrative that has emerged from the event is what position of strength BP has in Russia, and whether or not they're caught in the middle of a power struggle between the Russian government and the Russian energy billionaires.

It appears the public face of the battle isn't what is at issue, referring to a proposed deal with Rosneft to drill in the Arctic, while also retaining their current Arctic-drilling deal with the billionaires via TNK-BP, although that is what launched the battle.

Is it as simple as the Russian billionaires contend, that BP has snubbed them for another partner? Are the Russian billionaires wanting to take a bigger position in TNK-BP, or own it altogether? Or is it, as some believe, a battle between the Russian government and the billionaires over the energy resources of the country? Nobody outside knows at this time.

For now is seems a lot of the feathers have been smoothed, but as mentioned, there are too many rumbles beneath the surface to believe the issue has been taken care of to the satisfaction of the participants.

More than likely this isn't the end of the fight, and some believe there has been irreparable harm between BP and the billionaires, something that could do a lot of damage to the value of BP if it escalates further, as the partnership accounts for about 33 percent of BP's oil production.

If BP is able to maneuver itself into working with both, it could be an extraordinary deal for them, which could result in billions of dollars in revenue and profits if they find the amount of oil they believe resides in the region.