BP increases its stake in Russian oil firm Sidanco

BP PLC said it has completed a transaction with Alfa Group and Access-Renova to increase by 15% its stake in Russian oil and gas firm Sidanco for $375 million. BP now holds 25%, plus one share, in the company—a level that matches its current voting rights, BP said.

April 22, 2002

By OGJ editors
HOUSTON, Apr. 22 -- BP PLC said it has completed a transaction with Alfa Group and Access-Renova to increase by 15% its stake in Russian oil and gas firm Sidanco for $375 million. BP now holds 25%, plus one share, in the company—a level that matches its current voting rights, BP said.

BP executives hold positions as chairman as well as other key positions in Sidanco. "This purchase underlines BP's confidence in Russia and its improving business environment," said BP Chief Executive John Browne. "BP will now second further staff into Sidanco's management to help drive the company forward," Browne said.

"We view this transaction as an important step in developing our cooperation with BP, and as a signal of renewed investor confidence in Russia," said Alfa Group Chairman Mikhail Fridman.

Sidanco produces 380,000 b/d of oil, mainly from fields in Western Siberia. Following completion of the transaction, Alfa Group and Access-Renova will remain majority stakeholders in Sidanco.