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. Last Updated: 07/27/2016

BP Cedes to Oligarchs in TNK Battle

BP is resigned to leaving control of TNK-BP in the hands of its oligarch partners to avoid a new corporate war, sources close to the company said.

It is most likely that current interim chief executive Mikhail Fridman will retain his position and would keep his ally, German Khan, TNK-BP’s co-owner and executive director, to run the day-to-day operations into the new year, the sources said.

The sources said BP had no chance in the foreseeable future to promote its protege to CEO, leaving the day-to-day decisions at the firm, which generates a quarter of BP’s worldwide oil output, to the oligarchs.

Fridman’s appointment as interim CEO was perceived as the final step by BP to cede much of its influence at TNK-BP. It followed months of bureaucratic red tape imposed by the government on BP’s Russian operations, in heavy contrast with statements by the Kremlin that it would not get involved in the conflict.

TNK-BP said in May that it hoped to select a new CEO by the end of the year.

Two newly appointed executives are in the running for the top job —BP nominee Pavel Skitovich and the Russian partners’ candidate, Mikhail Barsky, who came from small oil firm West Siberian Resources.

One source said Skitovich would be pushed aside.