TNK-BP joint oil venture's Russian shareholders have rejected a proposal by BP to pay a $1 billion interim dividend, the AAR consortium representing them said on Monday.
“Considering the unstable situation on the markets and unresolved problems of TNK-BP corporate management, we believe the shareholders should display increased caution. Due to this, we believe the payment of additional dividends is currently inexpedient,” AAR CEO Stan Polovets said in a statement .
BP proposed on July 20 that its Russian joint venture TNK-BP pay $1 billion in dividends from profits received in 2012.
British oil major BP currently holds a 50 percent stake in the venture, along with AAR. BP said last week it wanted to sell its 50 percent stake, which market participants estimate could be worth as much as $32 billion.
The AAR consortium comprises Alfa-Group, owned by Mikhail Fridman and German Khan ( 25 percent), Renova controlled by Viktor Vekselberg with 12.5 percent and Access Industries possessed by Leonard Blavatnik with 12.5 percent.
BP and AAR have been locked in a long-running dispute over management of their Russian joint venture, which resulted in the replacement of the former TNK-BP CEO Robert Dudley in 2008. Dudley has subsequently become head of BP.
Fridman resigned as TNK-BP's CEO in late May due to what he called a collapse of corporate management.
