Strategic Partnership between BP and Rosneft: A Case Study

Introduction
The aim of the study is to review a scenario related with partnership between British
Petroleum (BP) with two Russian oil companies, Rosneft which us a state owned Oil
Company and Alpha Access Renovation (AAR) which is a consortium of Soviet born
oligarchs and is one of the biggest privately owned financial organization in Russia.
British Petroleum announced its strategic partnership with Roseneft in 2011 to
cover about 125000 square kilometer of Kara C which led to a series of court
injunctions being laid on BP by AAR who were also its partners (Gomes et al. 2016).
Identification of the problem
According to several authors the main reasons why the alliance between Roseneft
and BP failed which included a lack of diligence on the part of BP and also due to a
poor form of alliance management. It is pointed out that within any alliance the
degree of inter partner conflict can have severe effects which can lead to
divergence of objectives and also causes the common interests and goals of
partnership to be undermined. Furthermore it has also been stated that in order for
effective cooperation to develop the levels of conflicts within the organization
should be low (Hubbard et al. 2018).
After the incident of deep water horizon the focus for BP was changed to expanding
its revenues and oil assets across street world while the aim of AAR was to maintain
the TNK-BP position within the oil market in Russia which would have been
undermined by the alliance between BP and Roseneft. Thus it can be clearly seen
that the alliance between BP and Rostney was considered to be a significant
business threat to AAR there you suggesting that BP is undermining its partnership
with the company (Luvison and Cummings 2017). The development of the
partnership by the two Russian oil companies with BP has been the result of
privatization of oil businesses of Russia under President Boris Yeltsin resulting in the
privatization of AAR in 1999 by 51% and the 49% being owned by the state (Zoogah
et al. 2015). The production of Petroleum between 1993 and 2000 for Russia
increase considerably helping it to overcome the oil production by United States
and becoming the second largest oil producer after Saudi Arabia. The resulted
mismanagement of the alliance caused a significant conflict between BP and AAR in
2008 when BP was threatened of legal actions and caused the CEO of BP Bob
Dudley to be ousted and a new board of directors was created for TNK-BP to ensure
equally representation of the interest of both BP as well as AAR. By 2019 Mikhail
Fridman, of AAR became the chairman of TNK-BP there you showing that BP finally
agreed to cede influence to AAR. In the same year Maxim Broadsky was nominated
as the new CEO of TNK-BP (Keese 2017). The issue that mainly resulted in the share
swap of BP as its partnership with Russia to be undermined because of the existing
alliance with BP worth AAR in the form of TNK-BP. The Russian consortium had a