Monday, January 31, 2011

BP Learning Why It’s Bad to Get Into Bed With Russians

So BP is supposed to resume dividend payments, after they were suspended following the BP Oil Disaster in the Gulf. Dividends are a key issue for British retirees—so it’s a political issue as well as a financial one.

Didn’t Vonnegut make pictures like this in
“Breakfast of Champions”?
However, these resumed dividend payments are threatened even before they’ve begun, by the fucking Russians: TNK-BP, the 50-50 joint venture between BP and some Russian oligarchs, might not be issuing the $1.8 billion fourth quarter dividend—$900 million of which were supposed to go to BP.

BP needs those $900 million: The February BP dividend payment is supposed to total $1.3 billion, and BP simply doesn’t have the cash on hand for the February payment.

The Russians—organized in the investment vehicle Alfa-Access-Renova (AAR)—are pissed that BP is forming a joint venture with the State-controlled Rosneft to do Arctic exploration. TNK-BP was supposed to be BP’s primary vehicle for all Russian endeavors.

AAR’s board is voting today. If they vote in favor of suspending the TNK-BP dividend payment—which BO needs—then BP is going to take a serious hit. BP

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