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BP facing rough economic future?

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BP facing rough economic future?
A frame grab of the live video stream of operations to stop the Deepwater Horizon oil spill is seen on May 28, 2010. BP has executed its "Top Kill" process, which places heavy kill mud into the oil well in order to reduce pressure and the flow of oil from the well, but may not know if the procedure successfully stopped the leak for several days. UPI/BP

LONDON, Oct. 24 (UPI) -- BP is facing a difficult situation as costs from last year's oil spill and ongoing legal woes with its Russian rival drags on its performance, an analyst said.

BP is still coping with the financial fallout from last year's oil spill in the Gulf of Mexico. It's also been locked in legal battles with shareholders at Russian venture TNK-BP over a proposed January deal with Russian oil company Rosneft.

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Without a major breakthrough at the company, some top shareholders could put more pressure on Chief Executive Officer Bob Dudley, sources told The Daily Telegraph newspaper in London said.

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Analysts expect third-quarter profits for BP to fall more than 10 percent when compared with last year. Iain Armstrong, analyst at Brewin Dolphin, told the Telegraph that BP was facing a "difficult situation" with TNK-BP.

Shareholders at the Russian joint venture took BP to court over the collapsed Rosneft deal. Dudley, when he served as the head of TNK-BP, was left his Moscow office in 2008 because he said he was harassed by the Russians.

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BP received approval to restart work in the Gulf of Mexico, however, and received $4 billion in a settlement from Anadarko Petroleum that the British company would use to help with costs stemming from last year's spill. Anadarko owned a minority share in the failed Macondo well.

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