Sibir Energy Company Profile and Operations Overview

Sibir Energy is a Russian oil and gas company with a rich history. The company was founded in 1995.

Sibir Energy is primarily involved in the exploration, production, and sale of oil and natural gas in the Khanty-Mansiysk Autonomous Okrug of Russia.

The company's operations are centered in the Khanty-Mansiysk Autonomous Okrug, where it has a significant presence.

Sibir Energy operates a significant portion of its business through Salym Petroleum Development, which manages the Salym oil fields in the Nefteyugansk area.

The company has a 51% voting share in Moscow Oil Refinery, which is operated in partnership with Gazprom Neft.

Sibir Energy also has interests in Moscow-based gasoline retail networks.

Its subsidiary, Magma, has a presence in the Yuzhnoye and Orekhovskoye fields in West Siberia.

The company owns the Moscow Oil and Gas Company, formerly known as The Moscow Oil Company.

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The Sibir Energy scandal was a major blow to the London Stock Exchange's Alternative Investment Market (AIM). The former boss of Sibir Energy, Henry Cameron, was fined £350,000 for failing to disclose substantial cash payments to the company's biggest shareholder.

The payments in question totalled over $300m, a significant amount that was not disclosed in two separate market announcements made by Sibir in 2008 and 2009. These announcements claimed that Sibir had paid a total of $115.4m, which was a far cry from the truth.

The FSA found that the primary motive behind Mr Cameron's conduct was to retain the supportive shareholding of Chalva Tchigirinski, a Russian tycoon, in Sibir Energy. This was to prevent him from having to sell up due to financial difficulties.

The watchdog, the FSA, sharply criticised Henry Cameron's conduct, saying it created a false market in Sibir shares. The FSA's director of enforcement, Margaret Cole, stated that the fine reflects the gravity of his irresponsible actions.

Sibir Energy's shares were suspended and ultimately its listing was cancelled, although shareholders did not lose out after it was taken over by Gazprom Neft.

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Gazprom Neft became the sole shareholder in Sibir Energy after the city of Moscow agreed to withdraw from the oil unit.

Gazprom Neft spent $2.51 billion building up a stake of about 80 percent in Sibir Energy between April 2009 and May last year.

Sibir Energy's board voted to reduce its charter capital by 22.4 percent, the amount previously owned by Tsentralnaya Toplivaya Kompania, a company affiliated with the Moscow administration.

Tsentralnaya Toplivaya Kompania will receive $740 million compensation, paid by Sibir Energy.

The Siberian oil production venture, co-owned by Sibir Energy and Royal Dutch Shell, contributed more than 80,000 barrels a day to Gazprom Neft's output last year.

Gazprom Neft sold about 3 percent of Sibir Energy to Moscow in July, according to its third-quarter financial statement.

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Sibir Energy Plc has a subsidiary called Moscow Oil and Gas Company (MOGC), which will transfer its beneficial shareholdings in the Moscow Refinery to a new company called Moscow NPZ Holdings.

The new company, Moscow NPZ Holdings, will have a 50% stake, and another company, Gazprom Neft, will also have a 50% stake in Moscow NPZ Holdings.

Sibir Energy Plc's CEO, Henry Cameron, views the establishment of Moscow NPZ Holdings as a significant achievement, ranking high among the company's recent milestones.

The creation of Moscow NPZ Holdings will result in the company controlling 90.02% of the voting shares of the Moscow Refinery.

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Sibir Energy's shares were traded on the Alternative Investment Market before being taken over by Gazprom Neft.

The largest shareholders were Gazprom Neft and the Moscow city government together with the Bank of Moscow.

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