02 June 2004 11:00
Mystery of vanished Russian oil stake
ByLine: Christopher Hope Business Correspondent
SIBIR Energy said yesterday it believed it had "illegally" lost nearly all of its stake in a Russian joint
venture with Sibneft, the oil giant controlled by Chelsea FC owner Roman Abramovich.
The quoted oil and gas independent company also revealed that it did not know that its $111m stake in the joint
venture had been all but wiped out until nearly four months after it happened.
Sibir established the joint venture through its subsidiary Yugraneft with Sibneft four years ago to look for oil in
Siberia.
Last May, Sibir sold half of its stake to MOGC, controlled by the Moscow city government, to try to widen the market
for its oil.
Yesterday's comments were the first since Sibir's shares were suspended on the Alternative Investment
Market on April 19.
Sibir said yesterday: "On 15 April 2004 the board of MOGC advised Sibir that it had discovered that
Yugraneft's interest in Sibneft-Yugra has been diluted from 50pc to less than 1pc.
"A preliminary investigation undertaken by Sibir confirms that this dilution appears to have occurred and was
done without the knowledge of the board of Yugraneft."
Sibir added: "The board has obtained legal opinion that the dilutive measures carried out at Sibneft-Yugra were
illegal and Sibir has grounds for restitution of Yugraneft's 50pc shareholding."
Sibir said that it "intends to pursue with the utmost vigour the restoration of Yugraneft's 50pc interest
in Sibneft-Yugra".
A company spokesman said: "We have taken legal advice on this. We have talked to legal authorities in
Russia."
Sibir declined to say whom it blamed for the mysterious dilution of its stake. The company is now planning to issue
more shares to MOGC to replace the shares which have disappeared.
The company has commissioned an independent valuation of Sibir and is expecting to issue the new shares before next
Friday.
In the meantime, Sibir's shares will remain suspended until after an extraordinary meeting of shareholders on
July 5 to approve the new issue.
A spokesman for Sibneft said: "Sibneft continues to own 50pc of the joint venture."
Analysts said that Sibir's travails illustrated the risks of investing in Russia. Bruce Evers, at Investec
Securities, said: "It is very peculiar. You have got to be very sure about what you are getting yourself
into."
Mr Evers described the near four-month gap between the loss and Sibir's market disclosure as
"extraordinary". He added that it was unsurprising that Sibir was reluctant to blame anyone at this stage.
Richard Slape, at Seymour Pierce, said keeping the shares suspended until after the valuation was sensible because
any share price reaction now was likely to be overdone.
[The Daily Telegraph] |
RUSSIA IN FACTS
