Seeking Alpha

Is BP’s (BP +1.5%) announcement that it may sell its share of TNK-BP a sign it's raising...

Is BP’s (BP +1.5%) announcement that it may sell its share of TNK-BP a sign it's raising the stakes in a final play to wrest control from its Russian partners, or is it folding its hand for good? TNK-BP is now viewed in the market as one of BP’s principal risk factors. But if Bob Dudley is trying to extract concessions, he should remember that in Russia they favor a different and much more dangerous game of chance.
Comments (5)
  • Elliott Auckland
    , contributor
    Comments (119) | Send Message
     
    I think BP are only doing this to break the contracts it has with TNK, so it can now partner Rosneft in the artic.

     

    BP has no bargaining power here, the Russian companies net will always come off better.
    1 Jun 2012, 10:25 AM Reply Like
  • bptrader
    , contributor
    Comments (10) | Send Message
     
    Owning TNK-BP outright would be suicide for BP. It would simply be stolen by the state. They should just hang in and reap the money, and do no further development work, unless they get an offer too good to refuse. Russia is a bandit state similar to Elizabethan England.
    2 Jun 2012, 03:21 PM Reply Like
  • Maninder Batra
    , contributor
    Comments (572) | Send Message
     
    England has a libor scandal of the magnitude of 650 trillion$ and you claim that Russia is a bandit state compared to England?

     

    Thats very funny,considering that your Queen's banks are funded by Narco trade .
    16 Jul 2012, 04:33 AM Reply Like
  • Bruce Whitaker
    , contributor
    Comments (406) | Send Message
     
    If BP is able to exit at or above book, while it will lose a solid revenue stream and substantial reserves, it would also exit dealings with a dangerous partnership in a dangerous (for business) part of the world. A special dividend would do much to alleviate shareholder concerns.

     

    A great deal of BP's intangible worth is wrapped up in expertise that is not easy to come by. BP's many woes and missteps notwithstanding, this company is still undervalued and one more piece of uncertainty removed from the equation will be a net positive for the company.
    2 Jun 2012, 03:48 PM Reply Like
  • Elliott Auckland
    , contributor
    Comments (119) | Send Message
     
    Stop all your quibble about Russia being too dangerous to do business, every oil company in the world (and gas) wants a piece of Russia because the resources quality if vast. Leaving Russia completely would be a stupid thing for BP to do.

     

    It would be great news for Shell, Total, Exxon and Statoil who are all pushing hard to get a piece of the pie.

     

    I would bet all the proceeds of the deal, or a lot of, get reinvested back into Russia with a deal with Rosneft. Rosnefy may acquire BPs stake, but it would be an equity deal, little cash. The only company who has the balance sheet is Gazprom. Their debt ratios are at all time lows. Gazprom also already work with TNK through the Slavneft JV.
    3 Jun 2012, 07:20 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|