BP AND RUSSIAN ROULETTE
(CASE STUDY)
EXECUTIVE SUMMARY
Russian oil company TNK-BP was established in 2003 as the result of a strategic
partnership between oil company BP and a group of Russian businessmen represented by the
Alfa Access Renova. Corporate disputes broke out in 2008 due to differing opinions that BP and
AAR held concerning TNK-BP’s corporate governance structure and future strategy.
While tensions died down in 2010, BP’s attempt to go into partnership with Russian
state-owned company Rosneft in 2011 – which would have violated its TNK-BP contractual
obligations–, worsened relations once more. In 2013, following the failed partnership, Rosneft
acquired TNK-BP shares from both BP and AAR.
STATEMENT OF THE PROBLEM
The partnership between oil company BP and a group of Russian businessmen
represented by the Alfa Access Renova (AAR) had disagreements over corporate strategies due
to differing opinions.
WHOSE POINT OF VIEW WILL YOU CONSIDER?
Definitely Alfa Access Renova’s point of view, since the TNK-BP partnership was
aggravated from different situations of BP’s unsuccessful and unpermitted decisions. BP’s
attempt to go into partnership with Russian state-owned company Rosneft violated its contractual
obligations with TNK-BP, and, BP sealed the deal with Rosneft to sell 50% of its stake in TNK-
BP for US$16.7 billion cash and 12.8% of Rosneft’s shares.
GENERAL AND SPECIFIC OBJECTIVES
The objective of this case is to allow a discussion of issues such as those relating to
corporate governance and shareholder disagreements in joint ventures, the role of independent
directors in joint ventures, state involvement in corporate governance, minority shareholder
rights and corporate governance in an emerging market.
ANALYSIS AND DISCUSSION
The case study focuses on the issues such as those relating to corporate governance and
shareholder disagreements in joint ventures, the role of independent directors in joint ventures,
state involvement in corporate governance, minority shareholder rights and corporate governance
in an emerging market.
(CASE STUDY)
EXECUTIVE SUMMARY
Russian oil company TNK-BP was established in 2003 as the result of a strategic
partnership between oil company BP and a group of Russian businessmen represented by the
Alfa Access Renova. Corporate disputes broke out in 2008 due to differing opinions that BP and
AAR held concerning TNK-BP’s corporate governance structure and future strategy.
While tensions died down in 2010, BP’s attempt to go into partnership with Russian
state-owned company Rosneft in 2011 – which would have violated its TNK-BP contractual
obligations–, worsened relations once more. In 2013, following the failed partnership, Rosneft
acquired TNK-BP shares from both BP and AAR.
STATEMENT OF THE PROBLEM
The partnership between oil company BP and a group of Russian businessmen
represented by the Alfa Access Renova (AAR) had disagreements over corporate strategies due
to differing opinions.
WHOSE POINT OF VIEW WILL YOU CONSIDER?
Definitely Alfa Access Renova’s point of view, since the TNK-BP partnership was
aggravated from different situations of BP’s unsuccessful and unpermitted decisions. BP’s
attempt to go into partnership with Russian state-owned company Rosneft violated its contractual
obligations with TNK-BP, and, BP sealed the deal with Rosneft to sell 50% of its stake in TNK-
BP for US$16.7 billion cash and 12.8% of Rosneft’s shares.
GENERAL AND SPECIFIC OBJECTIVES
The objective of this case is to allow a discussion of issues such as those relating to
corporate governance and shareholder disagreements in joint ventures, the role of independent
directors in joint ventures, state involvement in corporate governance, minority shareholder
rights and corporate governance in an emerging market.
ANALYSIS AND DISCUSSION
The case study focuses on the issues such as those relating to corporate governance and
shareholder disagreements in joint ventures, the role of independent directors in joint ventures,
state involvement in corporate governance, minority shareholder rights and corporate governance
in an emerging market.
