BP Amoco forced to rethink its strategy

Having lost the battle to prevent Tyumen Oil acquiring one of its prize assets, BP Amoco is reconsidering its position in Russia.

It was already well known that Russia was a difficult place for business when BP sank $500m into the purchase of 10% of the Sidanco oil corporation in late 1997. But with its huge petroleum reserves, Russia was seen as a place from which major oil companies could not afford to stay away. Having fought and lost a long battle to stop Tyumen Oil bagging two of Sidanco's west Siberian producers at allegedly illegal bankruptcy auctions, BP Amoco is reconsidering its position in Russia, where it has built up a more diversified portfolio than most of its competitors. This is a not the easiest time to be devising a new Russia strategy, not least because the forthcoming parliamentary and presidential