Executive Summary
Sibir Energy plc is a fully integrated independent energy company with exploration and production operations in Western Siberia and refining and marketing in the City of Moscow and the Moscow region. Since its creation in 1996, Sibir has grown its attributable reserves to over 680 million barrels (Russian classification A+B+C1+C2) and daily production to over 77,000 barrels of oil per day (bopd) making Sibir one of the largest UK-listed energy companies.
Upstream, Sibir’s production comes from its Yuzhnoye field, operated by Magma Oil Company (95% Sibir owned), and its joint venture with Shell in the Shell-operated Salym group of fields (50% Sibir owned). Sibir’s total current production is over 77,000 barrels of oil per day (bopd), including its 50% of production from the Salym Fields and its wholly owned Magma production unit. By the end of 2009 Sibir’s total production is expected to exceed 100,000 bopd. Downstream, Sibir is uniquely positioned through its ownership of the Moscow Oil and Gas Company (MOGC), through which it has 100 thousand bopd of operating capacity at the Moscow Refinery.
Company History
- 1997 - Shares admitted to the Alternative Investment Market
- 2002 - Spins off all UK assets to focus solely on Russia
- 2006 - Raises $580 million in equity placing. Russian shareholder, Bennfield, raises stake in Sibir to 57%.
Current Events
- In September, Sibir reported strong results for the six months to the end of June 2008, with pre-tax profits up from $104m to $288m (£161m) and revenues ahead from $681m to $1.9bn
- In October, Shell rumoured to be looking at taking a large stake - deal expected to close by year end 2008.
- Sibir has apparently postponed plans to migrate to the main board of the London Stock Exchange in order to devote more management time to a possible Shell deal. The move to the main board is now pencilled in for June 2009.
- In November, Sibir controversially announces that it has bailed out core shareholders by advancing $159m of pre-acquisition funds to Chalva Tchigirinsky and Igor Kesaev while it negotiated a final price for assets including a Moscow hotel, undeveloped land in a Moscow suburb and stakes in an ether refinery.
Business Model
Sibir's Western management team has combined with its largest Russian shareholder to meet the challenges sometimes raised by emerging markets and has strengthened the company at each turn. As the Russian market has matured, so too has Sibir's asset…
