TNK–BP is a joint venture company between TNK (Tyyumen Oil Company) and BP (British Petroleoum) in Russia. British Petroleum, was the world's third largest oil and gas supermajor who was founded as the Anglo Persia Oil Company. BP's upstream business operated in various countries (USA, UK, Australia, Angola, Azerbaijan, Canada, Egypt, Russia, Trinidad, Tobago and Indonesia). BP's production growth was constrained by its mature oil fields, so BP was aggressively looking for new reserves and the stake in TNK-BP was a major part of expected production growth. In recent years, BP's financial performance in many areas lagged behind that of ExxonMobil and Shell. TNK, a company held 50-50 by a group known as Alfa Access/Renova or AAR. TNK was created in 1997 from a cluster of 600 upstream and downstream companies in Russia and Ukraine acquired through various privatization auctions. AAR was a complex alliance involving three private investment companies : Alfa Group by Mikhail Maratovich Fridman, Renova Group by Viktor Vekselberg and Access Industries by Len Blavatnik.
Russia was the world's largest natural gas producer and second largest crude oil producer Oil and gas revenues made up about 50% of russian budget revenues. Russian oil and gas industry was dominated by six large firms : Foreign investor (TNK-BP, Lukoil) and Goverment controlled (Gazprom, Rosneft, Surgutneftegaz and Tatneft). Gazprom was Russian largest company and the world's largest gas production. Problems of oil industry in Russia : (1) Aging oil fields and poor maintenance, (2) a tax and regulatory regime that was increasingly viewed as confiscatory by oil companies and (3) a dearth of Russian and foreign investment in exploration and development.
TNK-BP develop and operate Russian oil discoveries. Joint venture was set up because of shareholding of Sidanco was owned by BP and TNK. But in fact, BP and TNK have different prespective in running business, this may caused conflict