Russia's TNK-BP to slash investment; still no CEO

MOSCOW MILLS — Anglo-Russian oil major TNK-BP said Thursday it will slash investment by $1.1 billion next year as plunging oil prices force big producers to review their spending plans.

Following a board meeting in Paris, the company said it would cut capital expenditure to $3.3 billion, a 25 percent drop from $4.4 billion this year.

The company added that it plans to produce 600 million barrels, or 1.6 million barrels per day, of oil equivalent next year, roughly the same level as this year.

BP and its Russian partners, which resolved a long-running and damaging conflict over strategy and control in September, have sparred bitterly over investment plans. The Russian investors, comprising Mikhail Fridman's Alfa Group, Viktor Vekselberg's Renova and Len Blavatnik's Access, have earlier this year called on the oil company to cut spending by $900 million, a proposal which was fiercely resisted by BP.

The board did not consider the nomination of a new permanent CEO, TNK-BP said.

Robert Dudley stepped down from the post on Dec. 1 in line with an agreement in September. Tim Summers has replaced him as interim CEO.

Denis Morozov, former head of Russian mining giant Norilsk Nickel, is considered the favorite to take over from BP-backed Dudley.

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