TNK-BP CEO may have to leave Russia

By Dmitry Zhdannikov

MOSCOW (Reuters) - The head of BP's (BP.L) Russian oil venture TNK-BP (TNBPI.RTS) may have to leave Russia within weeks, at least temporarily, due to work permit problems as a corporate row escalates, a source said on Tuesday.

"Everybody, including (chief executive) Bob (Dudley) and (chief financial officer) James Owen will have to be out of here unless a quick solution is found," a person with direct knowledge of the situation at TNK-BP told Reuters.

"It is a pure formality and the Russian government is creating a problem for themselves," the source said.

BP and its partners, four Russian or Russian-born billionaires, have been locked in a dispute over the firm's strategy and management tactics for several months although many analysts suspect the battle is about control of the venture which made a profit of $5.7 billion last year.

The Russians have accused BP of limiting TNK-BP's expansion abroad and have demanded that Dudley, a former BP executive, should resign. They blame him for what they say is poor operating performance and for improperly favouring BP.

BP says Dudley has behaved correctly and that the firm's performance compares well to its peers.

It has in turn accused the Russian partners of "corporate raiding", saying they are trying to improperly wrest control of the venture by limiting the number of foreign employees and unfairly criticising BP-nominated managers.

The Russian co-owners said in a statement on Tuesday they were not opposed to the use of foreigners but were also keen to gradually replace them with well-trained local staff.