OREANDA-NEWS. July 28, 2010. CEO of British Petroleum, Tony Hayward, is to be nominated for a non-executive role on the board of Russia’s third largest oil and gas group, TNK-BP, when he steps down from his current role, Reuters reported. Today, BP is expected to announce the nomination of Bob Dudley as the new CEO of BP. The American Dudley will replace Tony Hayward who has come under fire for his gaffe-prone handling of the worst oil spill in US history, sources close to the company said, reported the press-centre of OTKRITIE Financial Corporation.

View: We believe the nomination of such an experienced manager as non-executive director of the TNK-BP group should be taken positively by the investment community, although it is unlikely to produce any visible share price reaction.

Valuation and Action: TNK-BP trades on a 2010 EV/EBITDA of 2.5x. We expect a neutral market reaction on the news, but we reiterate our BUY rating on TNK-BP Holding with a target price of USD2.52/share.