BP to sell TNK?

Excellent:

BP has shocked shareholders by putting its stake in Russian joint venture TNK-BP up for sale in a move that could raise $30bn (£19.5bn) but which has left the City confused about future strategy.

The oil business is a dirty one in a backstabbing and financial sense. But being free of those complete bastards can only be good for BP.

In fact, the more I\’ve done business with Russia and Russian firms the more I would argue that it\’s not a good place to do such business…..

7 thoughts on “BP to sell TNK?”

  1. When I worked at BP (2001-2008), I did two projects in joint partnership with BP-TNK.

    Ever since then I have refused to work directly with or for Russians.

    Lazy, conniving, back-stabbing sons of bitches.

  2. You mean unlike Saudis, or Nigerians for example? There’s something corrupting about having loads of free money to fight over. Almost as if there’s an inherent flaw in the system of property rights to mineral wealth.

    I’ve worked with Russians in the City, most of them hired for their mathematical skills. Charming and hard-working every one of them.

  3. PaulB:
    Yeah, that’s because they hate how things are run in Russia as well.

    If you look at Brits or Yanks who are doing business in Russia – they are exactly what Tim and John G don’t like about the Russians.

  4. Yup they’ll sell, probably to Rosneft. They’ll be sitting on a hefty $30bn cash pile but their oil production will drop by 2m barrels per day, which will need to be rectified quickly, most probably by buying into something else with that $30bn. Trouble is, where? Most likely they’ll go into an independent deal with Rosneft of somewhere else in Russia, I can’t beleive they’ll quit the country altogether. The other snag neither Rosneft or any other state-owned company has $30bn in cash to pay for BP’s stake. BP could end up selling at a knock-down price backed with a load of vague promises and end up burned in Russia for the third – or is it fourth? time.

  5. The chances are that BP are going to get stitched up by the Russians again. PaulB might usefully reflect that the “standards” of corporate governance and law-enforcement of the Russian state might not be the same as the personal qualities of the Russians he personally knows.

  6. Bit too much game theory going on in BP HQ?
    “Would you rather have us as a partner or Putin, or even Exxon? Now shit your pants.”

  7. diogenes: As Tim says, Russia is not a good place to do business. My objection is to JG’s unpleasant remarks about Russians in general.

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