The relationship has sunk to a new low in recent months as legal wrangling
dragged on over BP’s failed attempt to bypass TNK-BP and sign an Arctic
exploration deal with Rosneft last year.

Mikhail Fridman (below), one of the oligarchs, resigned as TNK-BP’s chief
executive on Monday and said that both partners agreed the venture could not
continue in its current form.

Yesterday, BP said it had “received unsolicited indications of interest
regarding the potential acquisition of its shareholding in TNK-BP”.

It added: “In light of these unsolicited approaches and consistent with its
commitment to maximising shareholder value, and its obligations under the
shareholder agreement, BP has notified Alfa Access Renova of its intention
to pursue a potential sale.”

AAR said it “remains committed to the successful development of TNK-BP,
including potentially increasing its shareholding in the business”.

A source close to the group said the oligarchs “submitted an indication of
interest to BP about a month ago, and BP at that point declined to engage in
discussions”. It is now interested in negotiating for some or all of BP’s
stake.

BP declined to comment on suggestions that AAR had first refusal to negotiate
for a sale of BP’s stake under the terms of its confidential shareholder
agreement.

BP

One of Russia’s state-controlled companies, Rosneft or Gazprom, was suggested
to have been behind another approach.

Igor Sechin, the head of Rosneft, insisted it had “never thought” about taking
BP’s stake. However he said it would study its options now the stake was for
sale.

Investor attention will now focus on the value of a stake, which will be
strongly disputed. BP and Rosneft almost bought AAR out of the venture for
$32bn last year, but the value of TNK-BP Holding, the listed entity, has
fallen since to less than $40bn.

It is thought BP would be hoping to achieve at least $25bn for the stake, but
some shareholders have privately indicated that they would be disappointed
at a sale for less than $32bn.

One top-10 shareholder said: “It is all about price – this is a valuable
asset. Selling it will create better quality earnings and lessen the
discount at which it trades.”

Canaccord Genuity analysts said: “If BP could exit TNK-BP at a reasonable
price, we think the market would take the move as a major positive.” While
analysts at UBS said: “BP strategy has stressed value not volume. We
see a smaller, more nimble, lowgeared company as attractive.”

BP said there was no guarantee a sale would take place.