If Moscow maintains its position, Total will edge out ChevronTexaco and ExxonMobil of the United States, and Royal Dutch/Shell, the Anglo-Dutch energy group, in securing the second large corporate partnership in one of the most promising oil frontiers, the newspaper says.

According to the Financial Times, Washington's initial reaction was anger. Those in the US administration who had heard the news were extremely annoyed, the newspaper says quoting a Washington attorney specialising in international oil transactions. In his opinion, this could strain the relationship between France and the United States. Bankers said Chevron-Texaco, the second largest US energy group, was still interested in a deal with Sibneft, according to the newspaper.

Citing sources close to the two companies, the Financial Times says Total was seeking a 25 percent stake, plus one voting share of Sibneft. One banker said the deal could be worth about $4bn.

Meanwhile, Roman Abramovich, who controls Sibneft and is one of Russia's most politically connected oligarchs, has been looking for a foreign buyer for a stake in the company following his decision to unwind the merger with another Russian oil giant, YUKOS.

However, people following the discussions warn that they are not yet in their final stages and no formal deal was likely until Sibneft had been demerged from YUKOS. The newspaper quotes a Sibneft spokesman as saying that the company did not comment on market rumours, and it was focused on the demerger.