UPDATE 2-Russia TNK-BP partners to meet as Dudley is banned
(Adds source on AGM, Dudley reaction)
By Katya Golubkova
MOSCOW, Aug 14 (Reuters) - BP (BP.L) and its partners in oil firm TNK-BP will meet next month in a bid to resolve a row over management and a share float, a source close to the board said, as the Russian co-owners moved closer to ousting TNK-BP's head.
A Moscow court on Thursday banned TNK-BP Chief Executive Robert Dudley from holding office in Russia for two years. TNK-BP said it would appeal against the decision and that Dudley would remain in charge pending an appeal court's ruling.
"We are very disappointed with the decision," BP said in a statement. "However, Robert Dudley remains chief executive pending completion of the appeal process."
"Robert Dudley has BP's full support. We believe this is a further example of the administrative activities orchestrated by the other shareholders of TNK-BP," it said.
BP and its billionaire partners have been at odds over TNK-BP's strategy and management control, with the Russia-connected partners demanding Dudley's resignation, accusing him of favouritism to BP.
The quartet of Soviet-born billionaires has also proposed floating TNK-BP's stock.
The British major denies the accusations against Dudley and has said floating shares was not necessary.
Dudley, who left Russia in July due to visa problems blaming a campaign of harassment against him, has not disclosed his whereabouts. BP accused its partners of manipulating the Russian state by preventing Dudley from getting his visa renewed.
Last week, Dudley escaped a work ban when a court imposed a fine of just 500 roubles ($20.58) for violating the Russian labour code. But on Thursday, a Moscow labour inspectorate source said the inspectorate had filed a second claim.
"A decision on the second claim was taken today. (It resulted in) disqualification for two years," the source said.
TNK-BP said it would launch an appeal against the decision within 10 days and that Thursday's court ruling would not be enforced prior to the appeal court's decision.
The court case, initiated by Russia's state labour agency, raised questions about TNK-BP's use of foreign employees. BP's partners have also complained about the use of foreign workers and secondees from BP.
"This is another example of the sort of administrative interference which I referred to when I left Russia," Dudley said in a statement on Thursday.
SEPTEMBER EGM
TNK-BP, Russia's number three oil producer, is responsible for a quarter of BP's global output and analysts have said it was too important for BP for it to walk away from Russia.
BP and its partners each hold 50 percent of TNK-BP Limited, which in turn controls TNK-BP International. This in turn owns TNK-BP Holding, a listed unit with only a 5 percent free float.
The Russian co-owners want to list TNK-BP Ltd., which would effectively mean an initial public offering of shares.
A source close to TNK-BP's board said on Thursday BP and its partners had agreed to hold an extraordinary meeting of TNK-BP Limited on Sept. 25.
"They will discuss issues related to structure, management, including personnel changes and the IPO," the source said.
The Russian partners have demanded that BP propose a candidate for the CEO job from outside the company, preferably from an oil major such as Exxon Mobil (XOM.N).
Analysts have said Dudley's departure was almost unavoidable if the two sides want to reach a compromise. Many still say they suspect the final deal would involve a state-controlled company buying into TNK-BP as the Kremlin is still keen to strengthen its grip over the energy sector.
"We believe that the management reshuffling from both sides -- BP and the Russian shareholders -- could facilitate changes to the company's shareholder structure," analysts from Renaissance Capital said in a note this month. (Writing by Dmitry Zhdannikov)
