The Russian oil and gas industry is heavily regulated. The industry has 6 large firms. One of the larger players is TNK. Several years ago, TNK and BP formed a joint venture. The joint venture provided about 25 percent of BP’s oil production and about 40 percent of its oil reserves. Russia needed BP’s operations capability and BP gained access to Siberia. Oil extraction was easier and safer than the unsafe deep water drilling in places such as the Gulf of Mexico. In 2010, the massive oil spill occurred in the Gulf of Mexico. In January 2011, BP announced a new $16 billion strategic alliance with a second oil producer in Russia- Rosneft. At that time Rosneft was Russia’s second largest oil company. BP stayed in its joint venture with TNK and tried to enter into a venture with Rosneft. Several senior level TNK managers attempted to block this new strategic alliance with Rosneft. In March 2011, the Russian government voted not to grant this new strategic alliance. BP abided by the decision to not engage in the Rosneft strategic alliance. In September 2011, Rosneft entered into a strategic alliance with Exxon Mobil. Exxon Mobile is the largest oil and gas firm in the world.

ANSWER QUESTIONS FOR REPORT

1. DEVELOP PROBLEM STATEMENT (ONE SENTENCE ONLY)

2. IDENTIFY FACTS

3. CASE EXAMINATION (ANALYZE PROBLEMS)

4. RELEVANCE TO WORK ENVIRONMENT

5. WHAT WAS LEARNING IMPACT