The associates had many areas of disagreement, including international expansion, dividend payouts, the level of capital investment, the amount of expatriates, and choice of the CEO. The joint venture also had difficulties with the Russian government over exploration permits and worker visas.
From BP's perspective, the joint venture was a significant part of its international oil and gas company. TNK-BP accounted for almost one-quarter of BP's oil production, and close to one-fifth of its reservations. How the issues between the associates and with the authorities were worked out would have a durable impact on BP and its existence in Russia. The resolution would also impact the entire reputation of Russia for attracting and supporting foreign investment.
TNK-BP (Russia) Case Study Solution
PUBLICATION DATE: October 01, 2009 PRODUCT #: TB0009-HCB-ENG
This is just an excerpt. This case is about GLOBAL BUSINESS
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