BP confirmed on Thursday that it has signed an agreement aimed at keeping its half stake in TNK-BP – Russia’s third-biggest oil company.
The development apparently resolves a long-ranging battle for control with its local partners.
BP said in a statement that an overhaul of the governance structure of TNK-BP was agreed in principle by the two main owners – BP and Alfa Access-Renova (AAR).
The aim it said was to “better align their respective interests” and improve the transparency of TNK-BP’s equity.
“A memorandum of understanding (MOU), signed today and due to be finalised in detail over the coming months, envisages the re-structuring of the TNK-BP board through the appointment of three new directors independent of either side,” BP said.
The MOU also includes an option to sell up to 20 percent of a subsidiary of TNK-BP through an initial public offering (IPO) on the international financial markets at an appropriate future point, subject to the consent of the Russian authorities.
BP Chairman Peter Sutherland said an agreement