Sibir Energy

Sibir Energy was a British-registered, AIM-listed oil and gas company whose operating activities were concentrated in Russia, particularly Western Siberia and Moscow. Founded in 1996, the company pursued an integrated petroleum model rather than limiting itself to upstream exploration and production. Its activities included interests in oil fields, participation in refining, and exposure to gasoline retail networks. This structure connected crude production with processing and downstream distribution. The company’s principal upstream assets included interests associated with the Salym oil fields in the Nefteyugansk area of Western Siberia. These operations were conducted through Salym Petroleum Development. Sibir Energy also held interests in the Yuzhnoye and Orekhovskoye fields in West Siberia through its subsidiary Magma. In the downstream and infrastructure segments, it held a 51% voting interest in the Moscow Oil Refinery, operated in partnership with Gazprom Neft, and owned the Moscow Oil and Gas Company, previously known as the Moscow Oil Company. The company also held substantial interests in Moscow-based gasoline retail networks. Before its acquisition, Sibir Energy’s shares traded on London’s Alternative Investment Market. Its shareholder base included Gazprom Neft, the Moscow city government and Bank of Moscow, with Sberbank holding a smaller pledged interest. The company’s ownership and financial position became increasingly connected to Russian state-linked energy and municipal interests during the late 2000s. In August 2009, Gazprom Neft launched a bid for all shares in Sibir Energy. The transaction followed a difficult period for the company, including an investigation into property dealings involving former major shareholder Shalva Chigirinsky and the suspension of its chief executive. In February 2011, Gazprom Neft announced that it had become Sibir Energy’s sole shareholder after the withdrawal of the Moscow government-controlled Central Fuel Company. Sibir Energy therefore ceased to function as an independently owned public company and operated as a wholly owned Gazprom Neft subsidiary. Gazprom later reorganized the assets associated with the company. In February 2016, it announced that Sibir Energy had been completely liquidated as a separate corporate entity as part of an asset restructuring process. The company is consequently a defunct corporate brand and legal entity, although some of the petroleum, refining, and retail assets connected with its former operations continued within the wider Gazprom Neft structure. Its historical significance lies in its integrated Russian oil-business model, its AIM listing, its Moscow refining and retail interests, and its eventual absorption into a major state-linked Russian energy group.

Sibir Energy was established in 1996 as an oil and gas company with a Russian operating focus and an international capital-markets profile. Its shares were traded on London's Alternative Investment Market. From its early development, the company pursued an integrated model covering several stages of the petroleum value chain: exploration and extraction, refining, and fuel retailing. This approach gave it exposure to both upstream production and the Moscow downstream market. The company's main operating base was Russia. Its upstream portfolio included interests in the Salym oil fields in the Nefteyugansk area of Western Siberia, operated through Salym Petroleum Development. Through its subsidiary Magma, Sibir Energy also held interests in the Yuzhnoye and Orekhovskoye fields in West Siberia. In Moscow, the company had a 51% voting interest in the Moscow Oil Refinery, operated in partnership with Gazprom Neft. It also owned the Moscow Oil and Gas Company, formerly called the Moscow Oil Company, and held substantial interests in Moscow gasoline retail networks. Sibir Energy's ownership became increasingly concentrated among Russian state-linked and municipal interests. Gazprom Neft was one of its largest shareholders, alongside the Moscow city government and Bank of Moscow. Sberbank held a smaller interest that had been pledged as loan collateral by businessman Shalva Chigirinsky. During 2009, the company faced governance and legal difficulties. It suspended its chief executive and opened an investigation into property transactions involving Chigirinsky, a former major shareholder. The company sought at least US$325 million in connection with a failed proposed sale of his real-estate assets. In July 2009, Russian police raided the company's Moscow office and removed corporate documents. On 21 August 2009, Gazprom Neft made a bid for all Sibir Energy shares. The transaction moved the company toward full control by Gazprom Neft and away from its previous public-market and mixed-shareholder structure. On 15 February 2011, Gazprom Neft announced that it had become the sole shareholder after the withdrawal of the Moscow government-controlled Central Fuel Company. The Central Fuel Company received US$740 million for its stake. After this change, Sibir Energy operated as a wholly owned Gazprom Neft subsidiary rather than as an independently controlled AIM-listed company. The final stage of the company's history was corporate consolidation. In February 2016, Gazprom announced that it had completely liquidated Sibir Energy as a separate company as part of an asset-restructuring program. The legal entity and standalone corporate identity therefore ended, while the assets and activities associated with its former portfolio were connected to the wider Gazprom Neft structure. Sibir Energy's history illustrates the consolidation of a formerly public, integrated Russian oil company into a larger state-linked energy group.

• 2016

  Standalone company is liquidated

  [1]Sibir Energyen.wikipedia.org

  Gazprom announces the complete liquidation of Sibir Energy as a separate company during asset restructuring.

• 2011

  Gazprom Neft becomes sole shareholder

  [1]Sibir Energyen.wikipedia.org

  On 15 February, Gazprom Neft announces that it is the company's only shareholder following the withdrawal of the Central Fuel Company.

• 2009

  Gazprom Neft launches takeover bid

  [1]Sibir Energyen.wikipedia.org

  Gazprom Neft makes a bid for all shares in Sibir Energy on 21 August, initiating the change in control.

• 1996

  Sibir Energy is founded

  [1]Sibir Energyen.wikipedia.org

  The company is established and begins developing an integrated oil and gas business focused on Russia.

An integrated Russian petroleum company combining upstream oil production with refining and fuel retail interests.

• Upstream production

  Crude oil

  Crude oil was the company's principal upstream output, associated with its interests in Western Siberian fields, including the Salym, Yuzhnoye, and Orekhovskoye developments.

• Upstream exploration and production

  Natural gas

  Natural gas exploration and production formed part of Sibir Energy's stated petroleum business, although the available reference material does not identify a separate branded gas product or specific production volumes.

• Refining

  Refined petroleum products

  Through its interest in the Moscow Oil Refinery, Sibir Energy participated in the processing side of the petroleum business. The refinery was operated in partnership with Gazprom Neft.

• Fuel retail

  Automotive gasoline

  Sibir Energy held substantial interests in gasoline retail networks in Moscow, giving the company a downstream route to market for automotive fuel.

• 2009

  Investigation into property dealings involving Shalva Chigirinsky

  Sibir Energy suspended its chief executive and investigated property transactions agreed with former major shareholder Shalva Chigirinsky. The company pursued at least US$325 million in connection with a failed proposed sale of his real-estate assets.

  Source

• 2009

  Police raid on Moscow office

  Russian police raided Sibir Energy's Moscow office on 8 July and removed corporate documents during the wider investigation period.

  Source

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• 2016

  Liquidation of Sibir Energy as a separate companyStrategy

  Background

  Following its absorption into Gazprom Neft, the standalone Sibir Energy structure was no longer required within the wider group.

  Action taken

  Gazprom completely liquidated Sibir Energy as a separate company as part of asset restructuring.

  Aftermath

  Sibir Energy ceased to exist as a separate corporate entity, with its former activities and assets associated with the wider Gazprom Neft organization.

  Source

• 2011

  Gazprom Neft completes move to sole ownershipM&A

  Background

  The Moscow government-controlled Central Fuel Company remained a shareholder after Gazprom Neft's takeover bid.

  Action taken

  Gazprom Neft became the only shareholder after the Central Fuel Company withdrew its stake.

  Aftermath

  Sibir Energy became a wholly owned Gazprom Neft subsidiary. The Central Fuel Company received US$740 million for its stake.

  Payment for Central Fuel Company's stake. US$740 million (February 2011)

  Source

• 2009

  Gazprom Neft bids for all Sibir Energy sharesM&A

  Background

  Sibir Energy was an AIM-listed company with a shareholder base that included Gazprom Neft, Moscow municipal interests, and financial institutions.

  Action taken

  Gazprom Neft announced a bid for all shares on 21 August 2009.

  Aftermath

  The bid led to Gazprom Neft's eventual full ownership and the end of Sibir Energy's independent public-company status.

  Source

1. 1Sibir Energyen.wikipedia.org