Thursday, 14 April 2011
They have an annual meeting today and the shareholders should be spitting fire at the board.
Firstly in the last year they have had the Macondo disaster, on balance the company did OK with it after a while, but the price they paid was the end of their US business and a cool $30 billion off the stock price.
The US was a 1/3rd of their business, so the company is left with a major strategic dilemma
Now, the new strategy was to do tie up's in BRIC Countries and it started with India. So far, so good. The though came this insane deal with Rosneft. Now Bob Dudley, chased out of Russia before by the BP JV partner's of TNK-BP, should know how Russia works. The latest twist to the story is that Rosneft and BP have offered a premium to buy our TNK-BP and been rebutted. Now BPO is left in a very sticky situation as Rosneft can really walk away from the deal and offer it to Shell, Total - anyone really, who will scoop it up delightedly. Of course, TNK-BP is going to sue its parent company too!
It looks very bad management from Dudley and the Carl 'The Ghost' Svanberg. I can't see how BP get through this mess well at the moment, it will take a miracle unless there is some shady deal with Putin underneath which in itself is a hostage to fortune for the future.
I won't be buying shares in BP anytime soon.