Investors want strategy shakeup at BP
BP's shareholders want to see some radical management action to help the company turn the page on US oil spill litigation and the quarrel with its Russian partners.business Updated: Jun 20, 2012 21:17 IST
BP's shareholders want to see some radical management action to help the company turn the page on US oil spill litigation and the quarrel with its Russian partners.
Both issues have dragged on the value of a company that was once Britain's biggest, but which now languishes in sixth place with a tainted reputation in the two countries that together account for half its oil output.
A move to jettison the refining, petrochemicals and fuel retailing businesses that distinguish an "integrated" oil and gas company from one that just finds and produces the stuff is one potential step.
Another might be a bold takeover deal to deliver the big blocks of future output the larger players in the industry are struggling to find.
"The integrated model isn't delivering best value to shareholders. You look at Shell and Total and ENI — no-one has demonstrated that the integrated model works particularly well," said Stephen Thornber of Threadneedle Investments, a top 20 investor in BP.