Barbara Mitchell

A few personal notes, references and research that was referred to in my letter to Robert
Dudley, March 7, 2012 BM
BP Aims to Rebound with New CEO, Leaner Company
“Robert Dudley, who will replace Tony Hayward on Oct. 1, promised changes in light of the
environmental disaster.”There's no question we are going to learn things from this
investigation of the incident," he said”.

“Hayward will leave BP with benefits valued at more than $18 million. He told reporters he
had been "demonized and vilified" but had no major regrets about his leadership.”

Embattled TNK-BP chief leaves Russia.
“The announcement by Robert Dudley came three days before the expiration of his visa,
which Russia has failed to renew on the ground that he allegedly does not have a valid
work contract. He has argued that his contract is open-ended.”

“Dudley, who has headed the venture since it was formed in 2003, left Russia on July 24,
citing “sustained harassment” amid court battles and labor and tax inspections that led to
him being disqualified from his post in Russia for two years”

“The Russians have pushed for Dudley's removal, arguing that he acts in the interests of
BP rather than for the joint venture. Russian authorities have launched a barrage of probes
against the firm, ranging from labor checks to tax investigations.”

“Analysts have speculated that the Russian investors orchestrated the assault, but the
consortium, AAR, denies the claims.”

Nearly a quarter of BP production at stake in Russia
Bloomberg News Published 05:30 a.m., Thursday, July 24, 2008
“The Russian side had a demand: The ouster of Robert Dudley, the American oil executive
who had been running the venture since it was formed in 2003. They held Dudley
responsible for crippling profits at TNK-BP, Russia's third-largest oil producer.”

“BP Chief Executive Officer Tony Hayward had arrived from London to subdue the rebellion
by the billionaires who hold half of the venture's shares. His company, beset by project
delays, safety failures and a falling share price, can't afford to lose sway over its Russian
assets. BP depends on TNK-BP for 23 percent of the oil and gas it produces, according to
company filings.”

“Dudley chose not to attend. He stayed in Moscow because of concerns he might not be
allowed back into Russia if he traveled abroad, say two people familiar with the matter.”

“Since the Cyprus meeting, the battle over the venture has escalated. Both sides accuse
the other of trying to wrest control of TNK-BP and its 8.2 billion barrels of oil and gas
reserves, which would be worth almost $1 trillion, based on benchmark crude oil prices
this year.”

“TNK-BP is being tied in knots by lawsuits, labor investigations, an industrial espionage
inquiry, work permit disputes and conflicts over board elections. BP has been forced to
pull out foreigners that it had employed in Russia and provided to TNK-BP under contract.

"Dudley is fighting to satisfy Russian authorities that he has a valid employment contract
so that his visa will be renewed before it expires later this month.”

“BP will be the loser in this dispute, says James Fenkner, managing director at Moscow-
based Red Star Asset Management, which oversees about $100 million.” "It's like a
Russian fairy tale, and they never end well," says Fenkner. "The fox eats the chicken."

“BP can ill afford a setback in Russia, which accounts for a fifth of its reserves. The
company's reputation has been sullied by safety lapses that led to 15 deaths in an
explosion at a refinery in Texas City in 2005, pipeline leaks in Alaska and a failure to bring
facilities such as the Thunder Horse platform in the Gulf of Mexico to completion on time.
Lord John Browne, Hayward's predecessor, resigned last year following allegations he let
a former boyfriend use company resources.”

“While BP and the billionaires take shots at each other, the Russian government has taken
aim at TNK-BP and its employees.”

“The Russian government and courts have taken moves that have forced the contentious
issue of foreign contractors. The government has made four labor inspections at TNK-BP
since mid- April, examining health, safety and work contracts for employees at the
headquarters in Moscow. Inspectors probed whether TNK-BP provided proper training on
computers and paid employees on the day fixed in their contracts, among other possible
infractions. "We've never received this level of attention from the authorities in the past,"
says Peter Henshaw, a TNK-BP spokesman.”

“This week, the court declared invalid BP's contract to send employees to work at TNK-
BP. BP says it will challenge the ruling, though in the interim it is withdrawing its 60
remaining geologists and engineers who were working at the joint venture.”

“The war among TNK-BP's owners is playing out in the loyalties of executives and
managers within the company. Khan, who oversees the joint venture's government
relations, legal and human resources departments, cut in half the number of government   
work permits requests for expatriates employed directly by TNK-BP -- against Dudley's
wishes.”

“At the end of April, Boris Kondrashov, TNK-BP's head of security, blocked BP contractors
from entering the joint venture's Moscow offices because of concerns over possible
violations of tax, immigration and labor laws, Polovets says.”

“The loss of these contractors has forced TNK-BP to halt several drilling projects, BP's
Graham says”.
“BP has expressed no interest in getting out, even as the lawsuits have multiplied and
executives within the venture have battled. Graham says the company will hang on,
though he points out a "remarkable coincidence" between the pressures the government
has brought to bear on the company and the complaints pushed by the Russian
shareholders.”

“BP has in turn accused the Russian investors of corporate raider tactics to wrest control
of the company”.

“On July 17, a group of 16 TNK-BP employees filed suit to remove Dudley for
discrimination against Russians and those not loyal to BP.”

“At the end of April, Boris Kondrashov, TNK-BP's head of security, blocked BP contractors
from entering the joint venture's Moscow offices because of concerns over possible
violations of tax, immigration and labor laws, Polovets says.”

Russian Court Bars Chief of Joint Venture, BP Says


“The chief executive, Robert Dudley, was denied a Russian work visa last month and has
been for some weeks in an undisclosed location outside of Russia from which he continues
to operate as chief executive. On Thursday, a Russian labor court ruled that he could not
work in Russia for two years.

“The Russian government has increasingly sided with BP’s partners, making it difficult for
the British company to maintain operational control. Many analysts have begun to question
whether BP will be able to hang on to its share of the venture, which provides BP with
about a quarter of its worldwide oil output.”

BP 'Small People' Comment Causes Anger Along Gulf

“On Wednesday, BP Chairman Carl-Henric Svanberg told reporters in Washington: "I hear
comments sometimes that large oil companies are greedy companies or don't care, but
that is not the case with BP. We care about the small people." He later said he was very
sorry for speaking "clumsily."


Former BP CEO Tony Hayward "angered" over being vilified in Gulf oil spill

“LONDON (AP) - Former BP PLC chief Tony Hayward has acknowledged that the company
was unprepared for the disastrous Gulf of Mexico oil spill and the media frenzy it spawned,
and said the firm came close to financial disaster as its credit sources evaporated.”
“He said BP had found itself unable to borrow from international investors during the spill
crisis, threatening its finances. He said that before a meeting with President Barack
Obama at the White House in June, "the capital markets were effectively closed to BP."
"We were not able to borrow in the capital markets, either short- or medium-term debt at
all, " he said. "It was a classic financial crisis issue."

“Hayward's successor, Bob Dudley, told the program that "these were frightening days" for
BP”.

"With a company the size of BP, its reputation, what it does - you almost can't quite
believe how close you are" to financial disaster, Dudley said. "Bank of America called -
wouldn't buy crude from us. Suppliers were asking for money up front. This was a very
unusual environment for BP. It was a very, very intense period."

“Dudley and Hayward also detailed their interactions with the White House, whose anti-BP
statements Hayward in part blamed for pushing the company to the brink of disaster. But
he described the June 16 meeting with Obama - during which BP agreed to set up a $20
billion fund for victims of the Gulf oil spill and suspend its dividend - as civil”.

"It wasn't confrontational, it wasn't aggressive. It was practical and workmanlike,"
Hayward said. He added that the meeting also yielded what he called an "almost unspoken
agreement" that the White House would cool its rhetoric”.

“Dudley used the program to defend the company's safety record, saying that a series of
disasters - including the deadly 2005 explosion at BP's refinery in Texas City, the near-
sinking of one of its flagship rigs a few months later and the huge oil spill in Alaska in
2006 - were not related”.
"The company has always had this strong, strong ethos around safety," Dudley said. "It's
also had a business model that drives for performance. And we've got to continue to find
that right balance."

Mr. Dudley, after reading more detail about your time in Russia, I can clearly see how you
were chosen as the best person for the Russian job, but I can see how some of the
arrogance on both sides could have intensified the problems. Additionally your statements
below seem a bit strange.

Had I been a reporter I would have asked you to explain. Were these all not operating under
BP management?  Following that train of thought could make major changes within BP
very difficult. To me, one has to acknowledge that there are problems before they can fix
them, but then, I am just “Small People” what do I know. BM

(Dudley used the program to defend the company's safety record, saying that a series of
disasters - including the deadly 2005 explosion at BP's refinery in Texas City, the near-
sinking of one of its flagship rigs a few months later and the huge oil spill in Alaska in
2006 - were not related”.

("The company has always had this strong, strong ethos around safety," Dudley said. "It's
also had a business model that drives for performance. And we've got to continue to find
that right balance.”)

( “OSHA statistics show BP ran up 760 "egregious, willful" safety violations, while Sunoco
and Conoco-Phillips each had eight, Citgo had two and Exxon had one comparable
citation.”)

The above facts do not sound like a company with “strong, strong ethos around safety” to
me, but I am “Small People” what do I know? BM

(“BP's safety violations far outstrip its fellow oil companies. According to the Center for
Public Integrity, in the last three years, BP refineries in Ohio and Texas have accounted for
97 percent of the "egregious, willful" violations handed out by the Occupational Safety and
Health Administration (OSHA)”

Maybe you were under the weather when you made those statements (:-) It was
a lot-going-on at that time…BM

To be perfectly honest I do appreciate Tony Hayward’s honesty and humility in “Former BP
CEO Tony Hayward "angered" over being vilified in Gulf oil spill”, He is believable, but
then again, honesty is what got him in trouble. Whereas your comments Mr. Dudley, in this
article, under the circumstances, are totally UN believable in light of the facts….BM

In all due  respect Mr. Dudley, I could give you the benefit of the doubt, and say that you
were not aware of BP’s actual safety record at the time of your statements, which is
possible. However just a note from “Small People” I would not repeat either of your
statement in public. To “Small People”, based on facts they don’t make sense. BM

I recommend that all Big Corporation CEO’s spend several hours per week talking and
listening to the “Small People”. Too much time spent with those like them, retards their
people-skills for dealing in the real world, where the majority of the population is “Small
People.”

(Dudley used the program to defend the company's safety record, saying that a series of
disasters - including the deadly 2005 explosion at BP's refinery in Texas City, the near-
sinking of one of its flagship rigs a few months later and the huge oil spill in Alaska in
2006 - were not related”.

"The company has always had this strong, strong ethos around safety," Dudley said. "It's
also had a business model that drives for performance. And we've got to continue to find
that right balance.”)

BP's Dismal Safety Record

“As the nation comes to grips with the worst oil disaster in its history, there is evidence
BP has one of the worst safety track records of any major oil company operating in the
United States”.

“In two separate disasters prior to the Gulf oil rig explosion, 30 BP workers have been
killed, and more than 200 seriously injured”

“BP's safety violations far outstrip its fellow oil companies. According to the Center for
Public Integrity, in the last three years, BP refineries in Ohio and Texas have accounted for
97 percent of the "egregious, willful" violations handed out by the Occupational Safety and
Health Administration (OSHA)”.

“OSHA statistics show BP ran up 760 "egregious, willful" safety violations, while Sunoco
and Conoco-Phillips each had eight, Citgo had two and Exxon had one comparable citation.”