New Horizons in International Business series
Chapter 5: TNK/TNK-BP Case Study
INTRODUCTION This case study traces the process of organisational transformation of TNK/TNK-BP. TNK1 was created from the privatisation of several oil enterprises in 1995. In 1998 the ﬁnancial investors Alfa Group and Access/Renova (AAR) gained control of the company in an auction of its shares. Sidanco, later acquired by TNK, was created in the privatisation process in 1994. BP’s ﬁrst involvement was a 10 per cent shareholding in Sidanco in 1997, subsequently increased to a 25 per cent shareholding plus one share in 2002 to give it blocking rights. The 50/50 JV TNK-BP was set up in February 2003 involving three companies: BP, TNK and Sidanco. The case study format follows that for Yukos. In each section the elements of the framework are applied ﬁrstly to TNK and then to TNK-BP. Sidanco, which had a chequered history under TNK with a partial BP shareholding, is included under the TNK-BP sections because of BP’s involvement in turning around the company in the later stages of their relationship. An overview of the organisational transformation process is provided in the time-ordered and conceptually ordered data displays in Tables 5.1 (TNK) and 5.2 (TNK-BP). Organisational transformation in TNK lagged that of Yukos, but the arrival of BP in 2003 speeded up the process. TNK was the last of the integrated oil majors to be privatised. It was an inauspicious amalgamation of assets that were left over in the privatisation process. This was the starting point for the case study: The bumpy birth of TNK...
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