BP increases its share in Russian oil firm Sidanco - April 21, 2002

Providing coverage of Alaska and northern Canada's oil and gas industryApril 2002

Vol. 7, No. 16

Week of April 21, 2002

BP increases its share in Russian oil firm Sidanco

Petroleum News Alaska Staff

BP announced April 16 that it has completed a transaction with Alfa Group and Access-Renova to expand its stake in the Russian oil and gas producer, Sidanco, from 10 to 25 percent.

BP has agreed to pay $375 million for an additional 15 percent of Sidanco, to take its interest to 25 percent plus one share — a level of equity that matches its current voting rights.

Lord Browne, group chief executive, BP said: “This purchase underlines BP’s confidence in Russia and its improving business environment. Over the last few years Sidanco has refined its costs, strengthened its balance sheet and increased its focus on the upstream business. With this foundation Sidanco is well positioned to compete in the Russian market. BP will now second further staff into Sidanco’s management to help drive the company forward.”

Sidanco produces some 380,000 barrels of oil a day gross, mainly at facilities located in Western Siberia, including the recently returned Chernogorneft assets. Alfa Group and Access-Renova will remain majority stakeholders in Sidanco following the completion of this transaction.

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