UPDATE: TNK-BP Shareholder Welcomes Dudley As Chief Despite Spat

(Adds analyst comments, detail, background.) By Jacob Gronholt-Pedersen Of DOW JONES NEWSWIRES MOSCOW (Dow Jones)--TNK-BP International (TNBP.RS) billionaire shareholder German Khan said Monday he will "welcome" Robert Dudley as the new chief executive of BP PLC (BP), despite past disputes that saw Dudley kicked out of the country and soured Anglo-Russian relations. "We fully support the nomination of Mr. Dudley," Khan said. BP Tuesday announced that Dudley would take over from outgoing Chief Executive Tony Hayward on Oct. 1, giving the company new leadership as it looks to regroup after the Gulf of Mexico oil spill disaster. Dudley served as head of BP's Russian joint venture TNK-BP Ltd. for five years, but was forced out of the country in 2008 following a battle between BP and its Russian billionaires partners for control of the company. TNK-BP Ltd. is a 50-50 joint venture between BP and a group of Russian billionaires. TNK-BP International is a wholly owned subsidiary of TNK-BP Ltd. Khan said he expects no problems working with Dudley. The Russian venture is a key component of BP's global operations. The company is Russia's third biggest oil producer and contributes a quarter of BP's total output and at least 20% of its reserves and growth prospects. In March last year, Hayward said TNK-BP had generated $25 billion in net income and distributed over $20 billion in dividends since 2003. "TNK-BP is the jewel in the crown for BP," said Renaissance Capital analyst Roland Nash. Vladimir Putin--then the president and now the prime minister--oversaw the creation of TNK-BP in 2003. But the partnership has not always been amicable. BP and the Russian billionaires fought for control of the company through 2008 in a series of lawsuits, accusations, investigations and ultimately a visa dispute that in 2008 forced Dudley to leave Russia under what he described as unprecedented pressure from authorities. Khan said previous disputes with Dudley weren't personal. "Our company reached significant results during the five years Dudley was in charge," Khan said. And BP has no plans to abandon the country. BP is planning to sell up to $30 billion in assets to help cover costs related to the spill--but not its lucrative Russian holdings. Hayward will become a non-executive director of TNK-BP. A BP spokesman said Dudley and Hayward will soon travel to Russia to meet with government officials and BP's business partners. Hayward as BP's chief executive has met regularly with Deputy Prime Minister Igor Sechin, the powerful official who oversees Prime Minister Vladimir Putin's energy policy, and the outgoing CEO has a good working relationship with the energy czar, the spokesman said. Khan said he welcomed Hayward as a member of TNK-BP's board. "The presence of Hayward in Russia will improve the political clout and connections with authorities," said Valery Nesterov, analyst at Troika Dialog. -By Jacob Gronholt-Pedersen, Dow Jones Newswires; +7 495 232 9197; jacob.pedersen@dowjones.com (William Mauldin in Moscow contributed to this story) (END) Dow Jones Newswires July 27, 2010 12:45 ET (16:45 GMT)