OREANDA-NEWS. November 06, 2009. With regard to information which was published in some media on dividend payments recommended by TNK-BP Holding, the company would like to state the following, reported the press-centre of TNK-BP.

TNK-BP Holding is a subsidiary of TNK-BP.

Dividends declared by TNK-BP Holding are distributed as cash payments to all shareholders according to the number of shares held. This includes minority shareholders as well as principal (majority) shareholders.

In the case of TNK-BP Holding, the majority shareholder is Novy Investments Ltd, a wholly owned member of the TNK-BP group of companies. Any dividends received by Novy Investments Ltd however are merely a money transfer within the TNK-BP group of companies as cash does not actually leave the TNK-BP group.

Novy Investments Ltd, together with TNK-BP, the parent company, then has to decide how to use these funds. This involves firstly ensuring operating costs including taxes are met and that any debt due can be repaid. Thereafter, cash required for capital investment in the business will be assessed. Any residual cash may then be considered by Novy Investments Ltd for distribution as dividends.

Jonathan Muir, Chief Financial Officer of TNK-BP, said: "Dividends paid by TNK-BP to its parent company, TNK-BP Limited, are used primarily to settle inter-company indebtedness and certain costs incurred by the parent.

"Majority shareholders in the TNK-BP Group have in the past few years received dividends on Group profits in advance of the minorities and this dividend is in the way of a catch up for minority shareholders to receive an equivalent percentage of profits in the past five years as the majority shareholders have already received.

Therefore, any assumption that dividends declared by TNK-BP Holding, a daughter company of the group, can be automatically considered as dividend payments to major TNK-BP shareholders, is incorrect and without merit.