Robin Pagnamenta, Energy and Environment Editor
Download your 2 for 1 Pizza Express voucher
BP's troubled Russian subsidiary, TNK-BP, is slipping farther from its grasp amid fresh delays to the appointment of a new chief executive at the joint venture.
Tony Hayward, the British oil giant's chief executive, travelled to Moscow last month for secret talks with Mikhail Fridman, the Russian oligarch who heads the AAR consortium that is BP's 50-50 partner in TNK-BP, The Times has learnt.
Among the topics discussed at the meeting on April 17 was the appointment of a successor to Bob Dudley, who fled Moscow last summer amid a bruising battle between BP and AAR for control of the group, Russia's third-largest crude producer.
Rather than approving a new candidate, people familiar with the talks said both men agreed that the appointment of a permanent chief executive was no longer a top priority. They added that Mr Hayward's informal agreement to soft-pedal on the appointment is a tacit admission that TNK-BP is no longer under BP's control.
TNK-BP is being run by Mr Dudley's former deputy, Tim Summers, whose title is acting chief executive, but there are growing signs that the company is in fact controlled by German Khan, another member of the AAR consortium that includes Leonard Blavatnik and Viktor Vekselberg.
It also means that TNK-BP, which employs 64,000 people and contributes nearly a quarter of BP's total daily oil production, is likely to have been left without a permanent chief executive for at least a year after the departure of Mr Dudley.
Ten months have elapsed since his departure from Russia, which he blamed on a campaign of intimidation and a string of legal and visa problems. A BP spokesman said the search for a successor to Mr Dudley continued and that an appointment would be made in due course, but added: “We are happy with the current situation. Tim Summers and the management team are doing a very good job.” He declined to offer a timeframe for the appointment and said that Mr Hayward's visit to Moscow was part of an “ongoing and regular dialogue” with AAR.
Last month TNK-BP reported core earnings of $1.5 billion (£1 billion) for the first quarter of this year. Despite a complete breakdown in relations between the two sides last year, the latest talks between Mr Hayward and Mr Fridman are thought to have been cordial, with BP eager to prevent the strained relationship from erupting into direct conflict. In an attempt to mend relations after Mr Dudley's departure from Russia last July, BP and AAR reached a new shareholder agreement last September and bolstered the board with the appointment of three new independent directors. They included Gerhard Schröder, the former German Chancellor, Jim Leng, chairman of Corus, and Alex Shokhin, president of the Russian Union of Industrialists and Entrepreneurs.
The appointment of a chief executive remains the final piece of the agreement designed to ensure stability at TNK-BP, which was formed in 2003. A number of Russian candidates have been under consideration for the job, including Denis Morozov, former head of Norilsk Nickel, the Russian mining giant, and Alexander Bulygin, chief executive of Rusal, the metals group.
In February BP appointed Mr Dudley, a former Amoco executive, to its board as a managing director with responsibility for oversight of the company's activities in the Americas and Asia.
Industry sectors news at a glance. Interactive heatmap, video and podcast
Get ready for the winter sports season, with our resort guides and snow reports
We are backing British business, what is the confidence of the nation and what businesses are succeeding?
Enjoy further reading from Travel to Fashion, Business to Sport, discover more
2006/06
£POA
Surrey
2009
£114,950
Derbyshire
The best policy at the
best price
Be Wiser Insurance
£POA
Surrey
Highly competitive six figure
Nationwide
Swindon
Competitive benefits package
Chartered Institute of Builders
Ascot
Competitive salary + benefits
NHS Direct
London
£125K
Meltwater News
Nationwide Positions
With Part Exchange Crest Nicholson could get you moving.
Award-winning riverside development, SW11.
Luxury apartments for sale from £350,000.
Find out more about our luxurious apartments and houses for sale in the heart of Sussex.
for sale in the French Alps
from E189,000.
We're offering extra savings on Voyager & Adventure of the seas Mediterranean Cruises fr £549.
Book by 28 Feb!
Includes 3* accommodation throughout, a 15 minute Apollo night helicopter flight down the Las Vegas strip and United Airlines flights from Heathrow.
Same break by air costs £189. Valid for weekend travel until 31 Aug 10.
Get covered on your travels with a superb range of policies at great prices
Visit InsureandGo.com
Family friendly villas with Quality Villas. Book with the specialists.
Contact our advertising team for advertising and sponsorship in Times Online, The Times and The Sunday Times, or place your advertisement.
Times Online Services: Dating | Jobs | Property Search | Used Cars | Holidays | Births, Marriages, Deaths | Subscriptions | E-paper
News International associated websites: Milkround
Copyright 2010 Times Newspapers Ltd.
This service is provided on Times Newspapers' standard Terms and Conditions. Please read our Privacy Policy.To inquire about a licence to reproduce material from Times Online, The Times or The Sunday Times, click here.This website is published by a member of the News International Group. News International Limited, 1 Virginia St, London E98 1XY, is the holding company for the News International group and is registered in England No 81701. VAT number GB 243 8054 69.