TNK-BP Says Feud Is Resolved

TNK-BP said Friday that it had fully resolved a shareholders' dispute threatening to hurt output at the country's third-largest oil producer.

"The shareholders informed the company's management of the agreements reached regarding TNK-BP's further development," TNK-BP said in a statement following a meeting Thursday by BP chief executive Tony Hayward and shareholders Mikhail Fridman, German Khan and Viktor Vekselberg.

Over the last year, BP, which owns 50 percent of the venture, and AAR, a consortium of Fridman, Khan, Vekselberg and Len Blavatnik, have been at loggerheads over strategy and development that saw the BP-nominated chief executive Robert Dudley ousted from Russia.

"TNK-BP is a very important business for both BP and AAR," TNK-BP chairman Mikhail Fridman said. "For the company, it is important to know that the structure of the share capital at TNK-BP will not change."

The statement also said that neither side would sell their stakes in TNK-BP, which pumps one-quarter of BP's global output.

BP and its partners made peace in August when the British oil major bowed to demands from the billionaires to end the dispute. They agreed that BP would propose a new CEO, that independent directors would join the TNK-BP boards and that a public offering would be made of TNK-BP's stock.

(Reuters, Bloomberg)