
BP’s new CEO will not be offered a seat on Rosneft’s Board
- BP says that the new CEO, Bernard Looney, will take over next year in February.
- Looney will not take BP's seat on Rosneft's board due to the complications of relations with Moscow.
- Current CEO, Bob Dudley, will keep the seat on the board after his retirement in March 2020.
- BP's second seat on Rosneft's board will remain under Venezuelan Guillermo Quintero.
- BP owns around 20% of the Russian company & contributes to around 35% of its annual output.
- Russian Rosneft is a major buyer of Venezuelan oil.
- BP's performance in the stock market has remained challenged in 2019 so far.
Follow Invezz on Telegram, Twitter, and Google News for instant updates >
The new Chief Executive for British Petroleum (BP), Bernard Looney, is expected to take over next year in February. In an announcement on Wednesday, the London based multinational oil and gas company said that Looney will refrain from taking BP’s seats on Rosneft’s board due to the rising complications with the Russian energy company.
Current CEO, Bob Dudley, To Remain On Board After His Retirement In March 2020
Copy link to sectionThe announcement further added that the current Chief Executive, Bob Dudley of BP has signed an agreement with Looney that makes him eligible to keep his seat on Rosneft’s board even after his retirement in March 2020.
The other BP’s seat on Rosneft’s board will remain under Guillermo Quintero. Being a Venezuelan citizen, Quintero has an association with PDVSA (Venezuelan state-owned oil and gas company) and has also served as a former executive at British Petroleum.
As per the sources, BP’s plans have been made known to Rosneft, however, further information regarding how long the arrangement is to last has not been divulged at this stage. Being one of the largest foreign investors of Rosneft, BP currently owns around 20% of the oil and gas company and contributes to around 35% of its annual output.
According to BP, Dudley has a history of working in Russia, with Rosneft, and has ties with the Russian President Vladimir Putin as well as the Kremlin. His experience, the company added, is irreplaceable by the new CEO Bernard Looney.
In a previous announcement by Dudley in October, he had cleared his stance that he intends to keep his seat on Rosneft’s board after his retirement due to the complications of the professional relationship with Moscow. It wasn’t, however, highlighted if the new CEO will take the second BP’s seat on the board.
Rosneft Is A Major Buyer Of Venezuelan Oil
Copy link to sectionAs per the experts, the decision of keeping Quintero on the second seat is also justified as Rosneft is a major buyer of Venezuelan oil. Washington had previously imposed sanctions on the Russian company that turned its investments towards PDVSA.
Rosneft has so far not commented on the news. It is also unclear if Dudley or Quintero will be eligible for remuneration from BP for staying on the board. Neither of the two experts is known to receive remuneration from Rosneft, nor are they the investors in its stock.
BP’s performance in the stock market has remained challenged in 2019. Having opened at 507 GBX in January, the company noted a year to date high of around 582 GBX in April. Followed by consistent downward rallies, the stock is currently trading at 481 GBX.
Advertisement
Want easy-to-follow crypto, forex & stock trading signals? Make trading simple by copying our team of pro-traders. Consistent results. Sign-up today at Invezz Signals™.
More industry news



