Has anyone please got any info on this one? It was supposed to start trading again in July and then August - almost end of August and nothing!

This sp. is sliding, is this to go on and on,any views.

nOT SLIDING ANYMORE!!! Checking out Russian Newspapers for why!!

Nice movement today 9p up possibly with the T20's getting in - T10's in from Monday. All getting in before the results, which will be exceptional on the 30th inst. Will head North and possibly touch 4.00 maybe 4.50p. November flowrates will increase this share possibly to 5.00 maybe 5.50p. ANTONs have this share as a buy with a price of 4.66 (+/-) 2.6%. If the BVI hearing starts Tuesday and there is some settlement in SIBIRS favour you can add another 3.00 to 4.00 pounds. All looking good for 2005. 2006 looks even more favourably as all SIBIRS hard work swings into full gear. I wouldn't be surprised if as per usual that there will be a RNS next week a couple of days prior to the results updating shareholders as to the completion of the infrastructure namely that the pipeline is up and functioning. DYOR. Good luck.

Salym Petroleum Development NV (SPD) announced the last stage of setup works next comes large scale production on Upper- and Western Salym fields. Over the past six to twelve months, SPD set up the previously limping production at the Upper Salym field. The company also launched production at the Western Salym field, installed industrial infrastructure units and a pipeline linking the field to Transneft enter point.

remind, earlier SPD and Russia's ministry of natural resources (MPR) were at odds about project launching. The MPR even threatened to recall the licenses, accusing the company of dragging out the project terms. The point is that initially the project was to be developed on PSA terms. As many in Russia know, to ink a PSA project with Russia's government requires decades. Russia's parliament back in 1999 included Salym in the list of fields approved for PSA terms development at that point the sides did not manage to settle the terms of the agreement. However, the MPR lifted all demands in 2003 after SPD shareholders have decided to start production at Salym group of fields following the current tax legislation. In April 2005, Russia's Agency on subsoil usage inked with SPD a number of addendum agreements on license renewal for Upper Salym and Western-Salym fields till 2032 and 2034 respectively (the initial fields' development term was to run out on 7 September 2013).
Dale Rollins, SPD general director, informed journalists on Salym briefing that in 2005 the company plans to produce some 321,000 tpa crude (6,420 b/d). The first oil on Western-Salym field was discovered in December 2004 and already the company estimates 2005 production at the field 138,000t of crude, plus 183,000t estimated production at Upper-Salym field. At same time, in 2006 the company plans to boost crude production seven-fold, bringing the annual output to some 2mn t (40,000 b/d).
To the point, the shareholders failed to negotiate handling arrangements for the crude produced at Salym fields. According to Rollins, crude distribution schemes and sizes of consumer markets are now thoroughly discussed. It is plausible that Evikhon, one of SPD's shareholders, will want to supply its share of produced crude to one of Russia's refineries. Alternatively, it is possible that SPD will distribute the whole production volume. The shareholders will decide on crude distribution schemes by October this year. The SPD has already signed a crude shipments agreement with Transneft, Russias crude transportation pipeline monopoly. In August 2005 the SPD plans to complete a pipeline linking Western-Salym field with Southern Balyk, Transnefts pipeline entry point. The project's construction works have already been completed, now test-run is in the progress. The plan puts pipeline launch date for November 2005 at the same time, the company's management estimates it might launch the pipeline sooner. The cost of 180,000-200,000 b/d, 88km pipeline tops $53mn.
The investments into the fields are estimated to peak over the next two years period, when the company plans to install main production and infrastructure units. Over 2003 2004 some $350mn have been invested in Western- and Upper Salym fields. In early 2005, SPD shareholders approved $249.2mn investments in Vadelypskoe field. In 2005 the company plans to invest in those three fields a total of $310mn. 2006 investment budget has not been approved yet; at the same time, the info leaked that it could reach some $250-$300mn. The total cost of the projects at the three fields reaches $1.25bn. Rollins also said that the company's budget requires periodical adjustments due to growing cost of metal production, exchange rate fluctuation and other factors. However, SPD director stressed that the company plans to keep within the project's budget and will try to cut costs by optimizing the production processes.
Presently, the project's payback period is hard to estimate -- it depends on a number of factors, including cost of crude, tax mode etc. Still, SPD plans that by late 2006 the company would enter the stage of positive financial flow, investing a part of its own profits in the projects and paying money to the shareholders.
Rollins happily expanded on the company's production plans but was tight-lipped towards the questions on expansion outlook. The director reminded that the SPD was tailor-made for Salym project and currently the shareholders do not think about expansion. At the same time, after the project reaches production stage, the company's shareholders could turn to expansion options, in particular, acquiring new licenses.

Oilmarket info

Salym Petroleum Development NV is a 50-50 company established by Shell Salym Development NV and Evikhon, controlled by UK-registered Sibir Energy. The SPD holds production licenses for all three fields of Salym group, which is located in Khanty & Mansy Autonomy. The group comprises of Western-Salym, Upper-Salym and Vadelypskoe fields. Field resources of + category are estimeated at: 113.3mn t (Western Salym), 21.3mn t (Upper-Salym) and 18mn t (Vadelypskoe). The total crude production at the field is estimated at 120.000

Moscow, 12.09.05


Major success of Salym Petroleum Development in Yugra Black Gold Competition
On September 9, 2005 the Black Gold of Yugra Competition was concluded in Khanty Mansiysk. This competition is carried out on an annual basis among oil and gas companies of Khanty Mansiysk Autonomous Okrug and is timed to coincide with the national Oilmans Day festivities. 41 companies have participated in the competition this year.



Salym Petroleum Development NV (SPD) has for the first time taken part in the competition and scored a major success. Based on its performance in 2004, SPD has won in two categories: as The most dynamic enterprise with oil production volume of under 1 million tonnes and For social and economic partnership and also became a laureate in the category For efficient management of subsoil.



Our debut in the Yugra Black Gold Competition can be regarded as a major success, commented SPD CEO Dale Rollins. Winning in the competition is the result of great performance of the SPD team, including our staff and contractors in 2004, a proof of the Companys dynamic development and our commitment to social responsibility and partnership. This year we continue increasing the pace of field facilities construction, putting into operation new wells and ramping up oil production. Currently SPD has come to an important milestone of the Salym Project in the next two months we are to complete and commission the key infrastructure facilities in the West Salym field Central Processing Facility, infield flow lines and oil export pipeline. These will enable SPD to reach a new level of oil production both in quality and in quantity. At this challenging moment the news of winning in the Black Gold of Yugra Competition has become a great encouragement for SPD.



Note for Editors:

Salym Petroleum Development NV is a company established on a 50:50 basis by Shell Salym Development B.V. and OAO NK Evikhon (a subsidiary of Sibir Energy plc. SPD holds licenses for three Salym fields (West Salym, Upper Salym and Vadelyp) which are located in the Khanty-Mansiysk Autonomous Okrug in Western Siberia, 190 kilometres from the town of Nefteyugansk.

The cumulative oil production from the Salym group of fields will be at least 6 million tonnes per year by 2010. In terms of total investment US$ 1.25 billion - the Salym Project is one the largest investment projects with foreign capital in the Russian energy sector.


ENQUIRIES:

Salym Petroleum Development NV Elena Zakupneva,

External Affairs Manager

+7(095) 518 97 20 Mob +7(095) 762-91-15

Scots oil executive takes on Abramovich again over 'theft'

IAIN DEY
CITY EDITOR


AN ABERDONIAN oil executive will renew his 1bn legal fight against Chelsea tycoon Roman Abramovich this week in a long-awaited court case in the Caribbean.

Henry Cameron, chief executive of AIM-listed Sibir Energy, has accused Abramovich of "stealing" his company's share of a massive oil field in Siberia.


The field was held in a joint venture company created five years ago but Sibir's 50% stake was subsequently diluted to almost nothing through a series of transactions that Cameron claims to know nothing about.

But Abramovich and his Sibneft oil business claim that they acted lawfully at all stages and the stake dilution was part of a deal agreed with Sibir's biggest shareholder.

Although a string of cases has been batting back and forth in the Russian legal system for several months, the battle which begins in the British Virgin Islands on Monday is seen as the linchpin to the eventual outcome.

Some industry sources have claimed that the case is holding up a multi-billion merger between Sibneft and its Russian rival Gazprom. Sibir has claimed that the contested field could be worth as much as 40% of Sibneft's total value.

Sibir has raised the action in the British Virgin Islands as four of six companies involved in the dilution process were registered there.

Sibneft's report and accounts acknowledge that all these companies are its subsidiaries. The action cites Roman Abramovich, Sibneft and the six associated companies.

The latest row in the Russian courts has revolved around the appointment of an administrator to the two firms' joint venture.

Sibneft had been attempting to gain control of the creditors committee but the Moscow Arbitration Court threw this out.

A previous hearing on that point was delayed after the judge excused himself from hearing the case because his wife had started working for Sibneft two days earlier.

A case in the High Court last month saw Sibir come under fire from a mystery group of shareholders over allegations that it colluded with Sibneft in the stake dilution to the detriment of the rest of the shareholders.

That case was thrown out by Justice Peter Smith, who branded the claim from Harley Street Capital as "bogus".

It emerged that Harley Street only owned 200 shares in Sibir and bought them after the stake dilution took place.

Thanks BANKONE for all your input on this share - do you really think Sibir will be vindicated?

I see a number of combinations which will ultimately result in the return of the asset to SIBIR in one way or another which will benefit the ordinary joe public shareholder. Firstly the BVI hearing i believe we wont hear an awful lot about this scenario as it will be subject to legal privilidge, legal arguments and complex fraud cases which this is, have no doubt about that may and possibly will go on for a number of years unless the bid for Sibneft by the parties involved include a pay off + asset return to SIBIR out of court in order to get the deal done. If it is Russias Privatisation plan to buy the asset Gazprom and return it to the public following its purchase (similar to the BT sale and the ilk), the SIBIR issue at some stage has to be settled. BP may step in and buy the company - Gazprom may buy the company - SIBIR may go it totally alone. However I believe that following the figures and the Flow rate announcement in November together with the Pipeline connection that SIBIR will be gobbled up. HC after all is keeping the P govt sweet. Moscow press at the moment are having a field day showing the bad character of Mr A so P wont want Mr A in his or any where near his camp in order to keep the public confidence on his side. I also believe this week will be the last chance to get in under 3.50 and come 29.9 get in under 4.00 because this share has some legs left in it and boy doesn't it look well fit. DYOR Good luck Come 8am in the morning I am having 6000 more of these.

A lot of readers but no writers - where has all the confidence gone my 6000 went through at 8.12 this morning unaware of the RNS whilst travelling to work. Excellent RNS brought about a number of B buys throughout the day but sells outweighed the buys 2:1. Result due on BVI hearing to day sometime will be interesting what it brings either PI's will be running for the exits or big buys will come in but nevertheless interesting reports yeaterday in the Guardian re Mr A rags to riches story and in the business telegraph stating that SBEs results will post strong interims when announced on 30th Sept 2005'

Bankone - these results I believe will be exceptional and maybe that news has already been included in the present day price considering the nighon one pound rise in the past 4 weeks or so.

David Conn Sports reporter of the year
Wednesday September 21, 2005
The Guardian


Roman Abramovich is in court today in Tortola, the British Virgin Islands, a defendant on a writ alongside his oil company, Sibneft, and six other companies based in the BVI, Panama and Cyprus, which Abramovich is alleged to control. In the scale of the cataclysms he has sailed through on his journey from impoverished orphan in communist Russia to owner of a vast pool of the country's privatised oil fields - and Chelsea FC - this is a trifling matter, a claim against Abramovich and his companies by another oil company, Sibir, for a half-share worth up to $2bn in a joint venture to serve Moscow with oil.

Sibir and Sibneft formed the company, Sibneft-Yugra, in November 2000, owning it 50-50 and work began on extracting oil. But then, on September 28, 2002, Sibir claim that Sibneft executives, illegally and without Sibir's knowledge, increased the number of shares in the joint venture tenfold. The new shares were transferred to three offshore companies, Tranquillo Trading, whose address is the second floor of an office block in Panama City, Shaw Investment & Finance and Carroll Trading, both registered in the BVI. As a result, Sibir's holding in their own joint venture was diluted from 50% to just 5%.
Five months later, on February 4, 2003, Sibir claim that even this minor holding was further diluted. They say that this time the number of Sibneft-Yugra shares was increased more than fivefold reducing Sibir's holding to below 1%. The offshore companies holding the new shares then sold their stakes to three new entities, Ferenco Investment & Services, registered in Limassol, Cyprus, Richard Enterprises and Gregory Trading, both of the BVI. Sibir, which is registered in Britain and whose chief executive, Henry Cameron, is a Scot, claim they were given no notice that the meetings were being held or that new shares were about to be issued.

"We believe this was a fraud on us to deliberately deprive us of half our company," Cameron told me this week. "It would have cost around $16,000 (8,870) to buy the shares to maintain a stake in a very important oil joint venture worth up to $2bn. It is ridiculous to believe we simply chose not to take up our rights."

Sibir began court proceedings in the Eastern Caribbean Supreme Court, BVI, in July this year, naming all six offshore companies and Sibneft and Abramovich personally as defendants, claiming they should pay Sibir the value of a half-share in Sibneft-Yugra.

Abramovich, with partners, owns 72% of Sibneft, one of Russia's largest companies, which he bought in 1995 for a song in the loans-for-shares scandal through which vast, state-owned assets were sold desperately cheaply to a handful of men who then became billionaires overnight - the oligarchs. Abramovich is not a director of Sibneft; however, Cameron told me they decided to sue Abramovich personally because they dealt with him from the beginning.

"The negotiations to do the joint venture originated with Mr Abramovich and we therefore claim that the conspiracy to defraud us of our share could not have happened without his knowledge."

John Mann, the spokesman for Sibneft and for Abramovich personally, told me that they deny all the claims and are defending the action fully. Sibir have had limited success with similar claims in Russia.

"We say that everything at Sibneft-Yugra was done legally and with integrity," Mann said. "We have acted entirely legitimately in the conduct of the joint venture. We reject all the allegations and we fully expect to win in court again."

Cameron told me the claim was brought in the BVI - which, despite its status as a tax haven, effectively operates English law - because four of the offshore companies are registered there. The current proceedings, which opened yesterday and will conclude tomorrow, will hear Sibneft's argument that the case should be thrown out because, they claim, the BVI has no jurisdiction to try the case. Sibir, however, won a previous hearing, which led to the newly issued shares, owned by the offshore companies, being frozen pending the outcome of the case.

Cameron has talked so publicly about the case because, he told me, he is "affronted" by the degree of corporate malpractice he claims has taken place: "I work in Russia so I am used to difficulties but I had a feeling of almost disbelief at the way this was done. I think it is very important for people in the West to understand it."

Since he bought Chelsea in August 2003, Abramovich has floated into British life largely free of criticism, or even much knowledge, about who he is and where he has come from. When his money bought Chelsea the Premiership last year, he was dragged smiling on to the Stamford Bridge pitch, showered in champagne, his team dancing delightedly around him, a mysterious fairy godfather, showering football with beneficence. Precious few voices have been sounded in caution, none prominent in football or at Chelsea, except the former sports minister, Tony Banks, who said he wanted to be sure Chelsea's new owner was "fit and proper". One or two have called for investigations into the source of Abramovich's cash but in truth there is no great mystery about it.

The loans-for-shares privatisations, what became known on the Moscow streets as "grab-it-isations", were public and have been extremely well documented. With Boris Yeltsin's Russia unravelling economically and politically in 1995, amid fears that the communists could return in the next election, seven men who had made initial fortunes in the free-for-all which followed communism's collapse offered to loan the government just 1.12bn in exchange for the right to manage 44 state-owned conglomerates, including the world's largest nickel company. Later they were allowed to buy the companies at a fraction of their true worth in closed auctions; Abramovich, with his then partner Boris Berezovsky, bought the Sibneft oil riches for just over $100m.

Russia, which had banned private wealth under communism, became one of the world's most divided countries, with a few men owning natural resources whose true worth is billions, while 20% of the population, some 50 million people, live below the poverty line of just $30 a month. Here Abramovich is celebrated but in Russia the oligarchs are widely loathed: "The vast majority of Russians believe the oligarchs stole those assets," explains Nikonov Alekseevitch, who runs the Polity Foundation think tank in Moscow. "There is huge resentment of them and the terribly unequal society we now have as a result."

While the football authorities here argue none of this is their business, they have done nothing to protect the sport itself. Abramovich said he looked at the major Spanish clubs, Real Madrid and Barcelona, before he bought Chelsea, but he could not buy them because they are democratic institutions, owned by their members. All our clubs are companies and as such up for sale.

The Premier League has no qualms about allowing businessmen to purchase its clubs, then throw in millions to buy success. The icy-eyed capitalists of American football's NFL know better; to them "competitive balance" is vital to the sport's success and money is shared strictly round the franchises. Here Abramovich can pour in whatever he wants to transform Chelsea from a debt-laden Ken Bates company to one with a locker-room of the world's best players.

"I know that the average person doesn't care very much about a dispute between two oil companies," Cameron told me. "But I think they do care about the way people conduct themselves in business."




Small mention in the business.telegraph............

Sibir Energy eased 7 to 332p on profit-taking. Dealers recently speculated the oil production group will post strong interim results on September 30.

Sibir Energy plc has completed the acquisition of Hitchens Global SA, bringing to 100% its ownership of Russian subsidiary, OAO NK Evikhon. Evikhon is the formal partner with Shell in a 50/50 joint venture to develop the Salym group of oil fields in Western Siberia where the start of commercial production is weeks away.

The Hitchens acquisition is part of a larger corporate restructuring approved by shareholders at Sibirs EGM on December 20, 2004 and brings into the company three assets: 8% of Evikhon, benefit of a $9.9 million debt payable by Evikhon (eliminated on consolidation), and a 12.5% interest in Mosnefteproduct, a downstream fuels retailing and distribution network in the Moscow region. In parallel Sibir is finalizing the acquisition of a 25% + 1 share interest in STBP directly from its beneficial owner, Mr. Chalva Tchigirinsky, as provided for by the shareholder approved restructuring. STBP is a joint venture which owns and operates a network of 45 BP branded filling stations in the City of Moscow.

Salym Update
Sibir also announced that commercial production at the Salym fields will begin in late November as drilling and large infrastructure projects continue to make significant progress. The Salym development is operated by Salym Petroleum Development (SPD), the joint venture between Shell and Sibirs Evikhon.

Four drilling rigs currently working in West and Upper Salym have drilled over 44 wells with 30 completed to date. Well results are showing reservoir development in line with expectations, some with net pay in excess of initial projections. Overall drilling times have been reduced to less than 15 days, adding momentum to a program that is scheduled to drill at least 67 wells and have 33 or more hooked-up and producing by year-end 2005.

Construction of the Central Processing Facility (CPF) and Crude Transfer Facility (CTF) is on schedule with completion imminent. Welding on the 88km export pipeline has been completed and hydro-tested. The finalization of these key infrastructure projects will allow SPD to begin pumping crude oil directly from the Salym fields into the Transneft system in November, 2005.

Of these developments, Sibir CEO, Henry Cameron said, By securing Sibirs full 100% ownership of Evikhon we ensure that Sibir shareholders will receive full benefit of our joint venture with Shell. Early well results are very encouraging and give us confidence that the Salym development will realize its rich potential. We also very pleased to see the project reaching commercial production on schedule. It is a tribute to excellent work the SPD team has done in fusing the best of international oil field practice and local Russian expertise.

H ave faith B1, also topped-up today before rns and during house removal.
I am old enough to recall the Ferranti fraud where a guy called Guerin from US. walked away with the kitty. If memory serves me he was given custodial in a Federal jail.---------------- The asset was never recovered
Henry Cameron is really going for this one, so an interesting time will be had by all.
Thanks for your regular info and views

Another buying day today nearly 2:1 1/2 million shares traded. Good article in the Daily Mail re the Gazprom and Sibneft Saga. The author suggests that Mr A 'may' have to get the thorn 'HC and SBE' out of his side before the deal can go through. Also states that HC and SIBIR have spent 1bn pounds on legal fees to win this one. I have faith but I hate to see an excellent company being held down by attempting to get back what is rightfully owned when really the company SBE is worth more than what it is today with or without the asset. The MMs know it B and T trades and when the interims are released (subject to a bit of profit taking) Northwards she will go. No news yet re BVI - frantically searching Moscow press and other dailys but I suppose if as it is believed it is 'in camra' and legal proceedings are still ongoing then the subjudisary rule applies. Good luck Sunray41 and the rest of the posters.

From Anton.

Sibir Energy. Consolidates stake in Evikhon; Salym production to begin in November

Separately, Sibir said commercial production at its Salym field (305mn bbls of 1P reserves) is just weeks away, with 30 of the planned 33 wells completed to date. The project is a JV between Evikhon and Shell, and preliminary flow indications are at or above expectations.

The news shows Sibir is continuing to position itself as a well-integrated company, both upstream and downstream. We reiterate our Buy recommendation.Friday,

(Article found on another BB)

September 23, 2005. Issue 3259. Page 1.

Fortunes Go to Kremlin Favorites

By Catherine Belton
Staff Writer
With Gazprom's securement of a record $12 billion loan now appearing to be a mere formality, the gas giant looks set to buy out Roman Abramovich's stake in Sibneft -- the biggest state buyout in post-Soviet history.

The deal would apparently let Abramovich walk out of Sibneft with nearly $9 billion in profit on an acquisition he made in the controversial loans-for-shares auctions of the mid-1990s.

Gazprom's buyout of his stake would also mark a stark delineation between Abramovich and his erstwhile partner Mikhail Khodorkovsky, whose conviction on fraud and tax evasion was upheld by an appeals court on Thursday.

Sources familiar with the negotiations between Gazprom and a syndicate of Western banks said that the loan was "imminent" and would be signed once remaining formalities were settled.

Earlier this week, Gazprom deputy CEO Dmitry Medvedev said that the gas giant could complete the acquisition of Sibneft by the end of the year.

The deal would put almost $9 billion in cash into the pocket of Abramovich, who along with his one-time partner Boris Berezovsky forked out a little more than $100 million for the oil firm in 1995-96.

It is difficult not to compare Abramovich's fortunes to those of Khodorkovsky, who now faces an eight-year prison sentence after a highly politicized trial and whose Yukos oil empire has been crushed under a $28 billion back tax claim. The legal onslaught was widely seen as retribution for the threat that Khodorkovsky posed to Kremlin power.

Even though the Audit Chamber has found that Sibneft underpaid its taxes by 10 billion rubles ($360 million) in 2001 and 2002, no legal action has been taken against the firm. Sibneft has denied any wrongdoing.

Meanwhile, Sibneft's effective tax rate in 2001 was just 9 percent, below Yukos' 13 percent in 2002 and much lower than the statutory rate of 24 percent.

Furthermore, lingering questions over Sibneft's murky ownership have raised speculation that Abramovich has the backing of the Kremlin.

In the summer, President Vladimir Putin publicly said that he was aware of talks between Sibneft and Gazprom -- and that the state should treat it as any other deal.

Berezovsky, who has fallen out of favor with the Kremlin and is living in exile in London, said in a telephone interview Thursday that he had evidence that Putin was seeking personal gain in allowing the Sibneft sale to go through unhindered.

In July, Berezovsky said he was preparing to sue Abramovich in a London court on charges of forcing him out of his stakes in Sibneft and other major assets at a knockdown price after relationship with Putin's Kremlin soured in 2000.

"I have been saying for a long time that Putin is a business partner of Abramovich," he said. "I have no doubt that the profits from the sale of Sibneft will be shared between Abramovich and Putin, as well as among several other individuals."

The difference in treatment between Khodorkovsky and Abramovich underlines Putin's interest, he said.

"It's now clear they just took away Yukos because it was not owned by any of their gang. Proof of this is exactly what's happening with Sibneft now. Putin has said he personally supports the deal."

Kremlin spokesman Dmitry Peskov declined to comment on Berezovsky's remarks. "A person who is under an international arrest warrant cannot accuse anyone of anything," he said. "It would not be correct to make any comment on his remarks."

Russian prosecutors have charged Berezovsky with widespread fraud.

Berezovsky claimed he had seen direct evidence of Putin's collusion with Abramovich in Sibneft when Abramovich forced him to sell the 50 percent stake in Sibneft he jointly owned with partner Badri Patarkatsishvili for $1.3 billion in 2000.

Abramovich said he was speaking in Putin's name when he told him he had better sell or watch the stake be taken from him anyway, Berezovsky said.

"This was done for the benefit of Putin. I can't rule out that during the investigation in England and during the court proceedings, Putin will be called to the court to give evidence."

Berezovsky also claimed he had documentary evidence of Putin's interest in Sibneft, but declined to elaborate on what his records might reveal, saying he did not want to give his enemies time to prepare for his legal attack.

Berezovsky said his suit would likely be filed in October, rather than the September date he had given earlier.

Sibneft spokesman John Mann denied that Abramovich had any special ties to Putin.

"It is clear to anyone that the relationship between Abramovich and Putin is the same the president has with any regional governor in the country," he said. Abramovich is governor of the Chukotka region in the Far East.

Mann declined to disclose the exact shareholder breakdown of Sibneft, saying only that 72 percent of Sibneft was managed by the Millhouse holding company on behalf of core shareholders, who "include Abramovich and a group of current and former Sibneft managers."

Mann declined to say whether the core shareholder group included any other individuals.

Sibneft's ownership structure has often posed a conundrum for financiers and even bankers extending loans to the firm.

"Documents on the ownership of Millhouse are pretty meaningless. If you look at them, you pretty soon run into a dead end," said one banker, speaking on condition of anonymity.

The banker added that a rigorous look at the company's ownership had not been a requirement in previous loan deals secured by oil exports.

Other market observers have suggested that Abramovich may at the least have to share some of his winnings with other state officials.

"One oligarch has said to me he doesn't think for a minute that Abramovich will keep all that cash. He owes a lot of people a lot of money, and a lot of it will make its way back to the Family," said a source close to a natural resources tycoon, referring to the clique of businessmen and powerbrokers who surrounded former President Boris Yeltsin.

Analysts said any lawsuit launched by Berezovsky was unlikely to affect Gazprom's title to the oil firm. Yet, another legal battle could give the gas giant and its big Western lenders some reason to pause.

Sibneft's former partner, Sibir Energy, is suing the oil company in Russia and the British Virgin Islands, alleging that it was pushed out of a joint venture to develop the Sibneft-Yugra field.

Hearings as to whether the British Virgin Islands court had jurisdiction over the case began Thursday, a spokesman for Sibir Energy said.

The spokesman said he could not comment further because the hearings were closed. If jurisdiction is granted, proceedings could take months, he said.

"The outcome of this could impact the value of Sibneft," said Chris Weafer, chief strategist at Alfa Bank.

Sibneft-Yugra produces some 8 percent of Sibneft's total oil output, according to Valery Nesterov, an oil and gas analyst at Troika Dialog, who said that the field could be excluded from the deal.

Gazprom has been so open and active in seeking to buy out Sibneft that the gas giant would suffer a serious blow should rivals Rosneft or Surgutneftegaz snap it up at the last moment.

"This has become a question of image after Gazprom's lack of success in merging with Rosneft," Nesterov said, referring to the failed merger between the two energy giants earlier this year.

"It would not be good for them to get into the same situation again. It's become a question of reputation and of how much you can trust the company's management."

"You still can't say it's a cinch," Weafer said. "As we saw in Rosneft, anything is possible right up to the point where the ink is still drying on the page."

NOTICE THAT THE COURT CASE COMMENCED THURSDAY NOT TUESDAY as reported in this article.
What is interesting in this article it suggests that the case in the BVI is to whether or not the BVI courts have jurisdiction - If that all it is about then no result as to the return of the asset will be forthcoming this millenium. Doesn't matter as I have said many times the company is strong enough without it.

September 23, 2005

Times Online

Abramovich faces court questions
By Steven Downes, Times Online Business Editor

Roman Abramovich, the Russian billionaire oligarch who owns Chelsea Football Club, could be forgiven for beginning to feel that someone is out to get him. Things may have seemed bad enough after one British tabloid today offered 10,000 to the first Premiership footballer to manage to score against his team. But the performance on the pitch of his English league champions has been among the least of Mr Abramovich's worries, as he has spent part of the week in a courtroom in the British Virgin Islands, accused of fraud over ownership of a half-share in a $4 billion Russian oil field.
At the heart of the ownership dispute is a joint venture between the AIM-listed Sibir Energy and Sibneft, the oil firm controlled by Mr Abramovich and reckoned to be worth up to $14 billion, which this week has been the subject of takeover talk involving Gazprom, the state-owned Russian gas producer.
Sibir accuses Sibneft of misappropriating assets worth up to $2 billion by unlawfully increasing its stake in the joint venture, Sibneft Yugra, through affiliate companies and reducing Sibir's stake from 50 per cent to less than 1 per cent.
The companies set up Sibneft Yugra in 2000 in order to develop the west Siberian oil field of South Priobskoye. But Sibir claims that in late 2002, Sibneft executives, without Sibir's knowledge, increased the number of shares in the joint venture by a multiple of ten. The new shares were transferred to three offshore companies, one registered in Panama City, and two others registered in the BVI. As a result, Sibir's holding was diluted to just 5 per cent.
Sibir further claims that five months later, in February 2003, even this residual holding was diluted further: by multiplying the new shares by five, Sibir's holding of the company of which they were once equal partners was reduced to less than 1 per cent. The offshore companies holding the new shares then sold these to three other companies, registered in Cyprus and BVI.
The chief executive of Sibir, Henry Cameron, told one newspaper this week that his company had been given no notice that the meetings were being held or that new shares were about to be issued. "We believe this was a fraud on us to deliberately deprive us of half our company," he said.

It would have cost around $16,000 to buy the shares to maintain a stake in a very important oil joint venture worth up to $2bn. It is ridiculous to believe we simply chose not to take up our rights

Henry Cameron, CEO of Sibir Energy

"It would have cost around $16,000 to buy the shares to maintain a stake in a very important oil joint venture worth up to $2 billion. It is ridiculous to believe we simply chose not to take up our rights."

Two months ago, the court in Tortola ordered a freeze on trading in a 49 per cent stake in the Anglo-Russian oil firm pending further hearings. The court case was brought by Sibir in the Caribbean because of the registrations of four of the six companies subject to their complaint.

After failing in its legal claims in Russia, Sibir has pursued Sibneft to the British Virgin Islands, which operates under the English legal system, and which could, if it finds against Mr Abramovich, enforce its decision in the UK, where Mr Abramovich owns homes in Lowndes Square, Belgravia, and Petersfield, Hampshire, as well as the Stamford Bridge football ground, and a business, Millhouse Capital, which appears to control many of the oligarch's business interests.

Four of the companies listed in the BVI court order are Gregory Trading, Richard Enterprises, Shaw Invest & Finance, and Carroll Trading. All are said to be located at the same address - Trident Chambers, Wickhams Cay, Road Town in Tortola. The court order appointed an independent receiver to take over the shares of three of the BVI companies that are part of the fraud claim. The other companies, including entities registered in Cyprus and Panama, as well as Mr Abramovich himself, were ordered not to make any move to shift the shares outside the BVI courts jurisdiction, or the control of the companies that presently hold them.

John Mann, Mr Abramovichs spokesman, was reported to dismiss the legal claims, saying "any attempt to drag Mr Abramovich into litigation would be misguided, since he is not on Sibnefts board and had no role in its dealings with Sibir", and thus only adding further mystery to the structure and governance of the companies apparently owned by the Russian.

What is not in dispute is that Sibir and Sibneft were equal 50 per cent stakeholders in Sibneft Yugra, where Sibneft was to fund the development and Sibir and its Russian operating company, Yugraneft, were to repay Sibneft, and then share the proceeds of oil sales equally. However, according to Sibir, Mr Abramovich, his associate David Davidovich, and their subordinates secretly converted Sibirs and Yugranefts stakes into holdings of the BVI companies and others.

Mr Mann has said that "everything that Sibir has done related to Sibneft Yugra has been within the framework of a set of agreements between our shareholders and their shareholders". Mr Cameron was reported in a Moscow newspaper in July as saying this is "all nonsense. We would like them to disclose to us what those agreements are".

In order to rule on Mr Abramovichs defence, Judge Indra Charles has ordered the Abramovich companies to produce the agreements in court. The court order also instructed the companies to reveal "when, from whom and for what consideration it acquired the interest in the share capital of Sibneft-Yugra presently registered in its name". In addition, the companies were also ordered to hand over their banking details.

Although Sibneft makes its financial accounts public, the others do not. It is this element which has required Mr Abramovich's attendance in court this week.

Crucially, if forced to comply with the court, the elaborate system through which Mr Abramovich directs billions of dollars of oil revenues will be exposed for the first time.

"We have not acted in any way illegally," Mr Mann said. "All the court cases so far have confirmed that."

The British Virgin Islands case could be a blow for Gazprom, which even has the backing of President Vladimir Putin to take a potentially controlling stake in Sibneft, Russia's fifth largest oil producer.

Roman Abramovich has made his millions and he just doesn't want to keep having to turn up for shareholder meetings

Kremline watcher

Yesterday, Gazprom received formal confirmation of approval from a consortium of western banks of a $12 billion loan - the largest in Russian history - which is believed to be intended towards payment for a controlling 72 per cent stake in Sibneft. Gazprom is believed to have offered $7 billion, while its owners maintain it could be worth twice that amount, with its shares this week trading at $3.55.

Yet the BVI high court may have an impact there. "This court case could impede the potential sale of a controlling stake in Sibneft to Gazprom," the research department of Russia's Alfa Bank said in a written note yesterday.

It would not be the first time that Mr Abramovich has been foiled in what appears to be his own, personal, multibillion-dollar exit strategy from Russia, where his former fellow oil oligarch, Mikhail Khodorkovsky, once the country's richest man, is now consigned to a Moscow jail, stripped of all his former assets.

Mr Abramovich had at one stage been trying to sell Sibneft to Khodorovsky's Yukos oil firm, a deal which collapsed with its owner's arrest on tax evasion charges in 2003. Earlier overtures to western oil concerns Total, Exxon and Chevron by Mr Abramovich also failed to materialise.

Any Gazprom deal would give the Kremlin effective control over about one-third of Russia's oil, confirming long-held suspicions that Russia is keen to renationalise previously state-owned enterprises.

But some analysts disagree. "This whole thing about Russia renationalising has been overblown," said one, a confirmed member of the group that believes Mr Abramovich is looking to liquidate his Russian assets.

"Roman Abramovich has made his millions and he just doesn't want to keep having to turn up for shareholder meetings."

Old news but relevant. Found whilst searching for update re BVI hearing as above
again from Times online. What is interesting in this article is the list of compalinants? including Sibir. Listed as bold and underlined

July 18, 2005

Court freezes Abramovich joint venture
By Times Online



A British Virgin Islands court has frozen trading in a 49 per cent stake in a British-Russian oil firm being fought over by Roman Abramovichs Sibneft and rival firm Sibir Energy.



The court ordered the freezing of the stake in the joint venture, Sibneft Yugra, pending a further court hearing to take place by July 27.

Sibir Energy has accused Sibneft, which is controlled by Mr Abramovich, who also owns Chelsea football club, of misappropriating assets worth up to $2 billion by unlawfully increasing its stake in Sibneft Yugra by selling shares to affiliate companies.

Sibir Energy claims its stake in the company was reduced from 50 per cent to less than 1 per cent between 2002 and 2003. The companies set up Sibneft Yugra in 2000 in order to develop the vast Siberian oil fields of South Priobskoye.

"We have started proceedings in the British Virgin Islands because British Virgin Islands companies have been used as vehicles," Sibir Energys chief executive, Henry Cameron, said.

The British Virgin Islands court ordered Sibneft and Mr Abramovich to maintain assets of at least $1 billion dollars until the freeze had been carried out by a receiver.

Sibir shareholders, led by Russian billionaire and 51 per cent owner Chalva Tchigirinski, have been fighting to regain the property they claim is still theirs, and have secured the backing of the court to have the case heard. Sibneft insists it acquired the stake by entirely legitimate means.

Mr Tchigirinski told The Sunday Times: "This is war. And it is one that Abramovich declared on me. We have evidence of wrongdoing. We need to repossess our property.

"Russia needs to build normal transparency and gain investor confidence. Im taking on this fight not just for my sake but for Russias too."

Sibir has emphasised that it, not just Mr Tchigirinski, is making the allegations and fighting Mr Abramovich.

The court order was secured on behalf of City institutions including M&G, the investment arm of Prudential, and RAB Capital, the AIM-quoted hedge-fund manager.

The British Virgin Islands case could also be a blow for Russias Gazprom, which had planned to buy a stake in Sibneft, the countrys fifth largest oil producer.

"This court case could impede the potential sale of a controlling stake in Sibneft to Gazprom," the research department of Russias Alfa Bank said.

"We wont comment on the specifics of ongoing litigation. We will address this issue in the courts," John Mann, Sibneft's spokesman, told AFP, adding that Sibir Energy had lost three court cases against Sibneft in Russia in the past two weeks.

The dispute is likely to throw light Mr Abramovichs business career. The billionaire will be asked to deliver to the court a full list of his assets, making public for the first time the extent and details of his wealth both in Britain and Russia.

From the Independent on Sunday

Oil-row businessman aims to score against Chelsea owner
By Greg Harkin
Published: 25 September 2005
Chelsea may be sitting pretty at the top of the Premiership with a record-breaking 100 per cent record, but the Champions of England could face their greatest challenge yet: from an angry Scottish businessman.

Henry Cameron, a 65-year-old former solicitor, could knock Chelsea off their perch if he succeeds in a legal action seeking 500m from a business associated with the club's super-rich owner, Roman Abramovich. He claims that the Russian was involved in share deals that cost him a 50 per cent stake in a 1bn Siberian oil fields venture.

Instead of making his fortune, he says, he ended up with 1 per cent of the business, after directors of the Russian firm Sibneft issued thousands of new shares in the business to their own subsidiary companies.

The Scot is a director of Russian-owned Sibir, which struck a deal with Sibneftto jointly develop oil fields in Siberia.

Mr Abramovich is named in a lawsuit launched by Mr Cameron's company in the British Virgin Islands, where the case is being heard because a number of co-accused firms are registered there.

Mr Abramovich's spokes-man, John Mann, insisted his boss had acted legitimately.

Chelsea may be sitting pretty at the top of the Premiership with a record-breaking 100 per cent record, but the Champions of England could face their greatest challenge yet: from an angry Scottish businessman.

Henry Cameron, a 65-year-old former solicitor, could knock Chelsea off their perch if he succeeds in a legal action seeking 500m from a business associated with the club's super-rich owner, Roman Abramovich. He claims that the Russian was involved in share deals that cost him a 50 per cent stake in a 1bn Siberian oil fields venture.

Instead of making his fortune, he says, he ended up with 1 per cent of the business, after directors of the Russian firm Sibneft issued thousands of new shares in the business to their own subsidiary companies.
The Scot is a director of Russian-owned Sibir, which struck a deal with Sibneftto jointly develop oil fields in Siberia.

Mr Abramovich is named in a lawsuit launched by Mr Cameron's company in the British Virgin Islands, where the case is being heard because a number of co-accused firms are registered there.

Mr Abramovich's spokes-man, John Mann, insisted his boss had acted legitimately.

Another Sunday Article

From Scotland on Sunday on line

Former Aberdeen solicitor to sue Abramovich for oil 'fraud'

NICHOLAS CHRISTIAN


SUPER-RICH Chelsea FC owner Roman Abramovich is to fight a legal claim from a former Aberdeen solicitor over a half share in a 1bn Siberian oil fields venture.

Henry Cameron, now the boss of an oil firm headquartered in the Caribbean, accuses Abramovich of involvement in share deals which cost Cameron his 50% stake in the deal.


The Aberdonian claims directors of the Russian's firm, Sibneft, issued thousands of new shares in the business to their own subsidiary companies.

Cameron, 65, alleges that the new issues reduced his firm's stake in the project from half to just 1%.

The Scot is a director of Russian-owned Sibir, which struck a deal with Sibneft five years ago to jointly develop two huge oil fields in Siberia.

Abramovich is named in a lawsuit launched by Cameron's company in the British Virgin Islands, where the case is being heard because a number of co-accused firms are registered there.

The oligarch and three companies controlled by Sibneft are named in the legal action at the Eastern Caribbean Supreme Court, where judges are expected to give their verdict soon.

Abramovich's spokesman, John Mann, said his boss had acted legitimately.

Speaking from Johannesburg, Mann said: "Everything with regards to our participation in the Sibneft transfer was legal and above board. We are happy to settle this matter through the courts rather than through the press.

"It was a 50-50 joint venture initially; however, through a series of events we came to control an additional 49% of it.

"It was all completely legal, we funded every dime of the project, we brought in all the technology.

"This case has failed at several courts in Russia, now it is being heard in the British Virgin Islands and we expect to prevail again."

Russian oil has made Abramovich one of the world's richest men. He has an estimated personal fortune of 7.5bn and has poured more than 700m into Chelsea FC.

The Russian is not a director of Sibneft but is part of a group of core shareholders who own 72% of the oil giant.

Cameron moved into the Russian oil business after working as a senior partner at Peterkins Solicitors in Aberdeen.

He was unavailable for comment yesterday but said last week: "We believe this was a fraud on us to deliberately deprive us of half our company.

"I work in Russia so I am used to the difficulties. But I had a feeling of almost disbelief at the way this was done."

Abramovich lost both parents before he was four years old and was adopted by his uncle. He dropped out of college in Moscow in the 1980s before making his first fortune through oil deals in the early 1990s, as many Russians took advantage of the artificially high value of the rouble and the hasty privatisations which followed the collapse of communism. The main source of this wealth comes from being one of the major shareholders in Sibneft, one of the biggest companies in the world's largest country.

Abramovich also had significant interests in Russia's aluminium industry and until recently owned a sizeable stake in Russian airline Aeroflot, the sale of which may have funded the Chelsea buyout.

Although many others who made it rich in 1990s Russia have since fallen foul of the Russian authorities - including some who have been forced into exile in the west, or been tried under allegations of tax irregularities - Abramovich has managed to survive unscathed, buying up stakes in the main Russian TV channel ORT and surviving investigations into allegations of shady dealings.

The tycoon has also dabbled in politics. In 1999, he was elected to the lower house of the Russian parliament, the State Duma.

He is also the governor of the remote province of Chukotka in the north-east of Russia, directly across the Bering Strait from Alaska.


From B1 All we need now is a home win (Judgement re Fraud after all I can't see Mr A disclosing his connections with the Russian Hierarchy so they may fold)or a scoring draw (BVI Courts verdict maybe that they will have jurisdiction and be able to hear the full case then it will be who can tell the best jokes without laughing and I don't think that the comedian in the pack is HC - he means business). Tomorrow and Tuesday is going to be an interesting couple of days culminating in the best day of all Friday - Strong interims.

(I'm going to risk a further 10000 on a T10 to top up 1st thing Mon)

Good luck to everyone. DMOR and going4it.

Looks like an out of Court settlement to me .
Too many people going to be compromised.

Duff Gen from another BB - sorry. I removed the Post as it was wrong. However why have there been a 4:1 sale:buy ratio today knowing that strong interims are about to be released along with other good news. Anyone who is selling now must be in the know re BVI or strapped for cash.

Comeon fellow posters anyone still interested. Found this whilst surfing other BB's Strong buys late afternoon pulled back the deficit to a half penny drop. This WARNING from HC is a pep up ahead of the results due Friday. I think for the Gazprom/Sibneft deal to go ahead one of two things may occur.
1) Mr A and his coniving Cronies capitulate and give SIBIR adequate compensation for the theft of their asset
2) Gazprom pay over 1,200,000,000 pounds or so for SIBIR and be done with it, Gazprom can then sort the problem out 'Inhouse'

I favour no 2 as it keeps Mr P and the K out of it, no embarrasment, it virtually doubles the SP of SIBIR keeping the PI and Inst happy.

Anyone out there favour any other possibility. Figures will be due out in Russian time friday probably around Midday give or take an hour or so and I can feel 4.50 pound a share coming on quite easily. Anybody out there that can read the graphs etc and if so what do they say ( or is it just like reading T leaves). 62 hours to figures. Virtually all OIL companies reporting have shown strong top lines this year so far.

Good luck to all.

NEWS
27/09/2005

Sibir Puts Western Banks on Notice in Sibneft-Yugra Affair


Sibir CEO, Henry Cameron, has written letters to the General Legal Counsels of several prominent western banks believed to be financing Gazproms bid to acquire Sibneft to put them on notice that Sibir will pursue its claims against Sibneft regardless of any change of ownership of that company. Mr. Cameron further warns the banks of undertakings that Sibneft has made to the court in the British Virgin Islands. The text of the letter is published below.


Dear Sirs

Dilution of Sibir Energy Plc's ("Sibir") interest in Sibneft-Yugra

I write in my capacity as CEO of Sibir. I understand from recent media coverage that Gazprom may be close to agreeing a deal to purchase Sibneft and that your bank may be involved in providing finance for the deal. Whilst I am only too aware that such rumours may be without substance or may come to nothing, it is important that you are aware that Sibir has brought proceedings against, among others, Sibneft in the British Virgin Islands in respect of assets valued at between $1.2 billion and $2.1 billion.

Sibir's claim against Sibneft arises out of a joint venture agreement entered into in November 2000 in relation to the development and exploration of oil fields, namely the Palyanovskoye and the south part of the Priobskoye Fields (the "Fields"). The development of the Fields was to take place through a joint venture vehicle called Sibneft Yugra. Sibir held its beneficial interest in Sibneft Yugra through its subsidiary, Yugraneft.

On 28 September 2002 and 4 February 2003, the Board and members of Sibneft Yugra apparently resolved to increase the issued share capital of Sibneft Yugra. Additional shares were allotted to offshore companies, believed to be beneficially owned by Sibneft, and to Sibneft, but not to Yugraneft. The cumulative effect was to dilute Sibir's beneficial interest in Sibneft Yugra from 50 per cent. to less than one per cent.

Sibir commenced proceedings in the BVI on 13 July 2005. Sibir's claim is that the above actions were a crude fraud perpetrated by Sibneft on Sibir, by which Sibneft gained a very substantial benefit. Sibir's claim is that, in committing the fraud, Sibneft breached fiduciary obligations which it owed to Sibir pursuant to the joint venture agreement. Evidence has been filed by each side and a hearing has been fixed for 19 September 2005 with an estimate of three days at which the issue of BVI Court jurisdiction will be determined.

Your bank should be aware that, by way of a confidential schedule to an Order dated 21 July 2005, various undertakings have been given by the Defendants. We would expect your bank to confirm with Sibneft that any prospective deal would not amount to a breach of such undertakings.

Sibir considers, on advice, that its case against the Defendants is exceptionally strong and that Sibneft's various explanations for the dilution are completely nonsensical and will be rejected by the Courts. We have already written to Gazprom in order to put them on notice as a prospective purchaser. Sibir's claims against Sibneft will continue regardless of any changes in the ownership of that company. As matters currently stand, because Sibneft has refused to recognise the validity of Sibir's claims, the assets of the Sibneft group are overstated to the value of our claim (i.e. between $1.2 and $2.1 billion).

Yours faithfully

Henry Cameron

B1, what about other possibilities:-

3. BVI court decides it has no jurisdiction

4. BVI court throws out the case because sibneft does have docs showing it acted legally and known/agreed by SBE's main shareholder acting on behalf of the company

5. sibneft decides to battle it out because the it will take years to get a substantive verdict out of BVI and longer for it to be upheld thru appeals and then even more difficult to get the final verdict implemented. in the meantime sbe is spending shed loads of money on legal fees and the shareholders get fed up.

I too think that your option 2 is a strong possibility. but HC will not capitulate easily (got to admire the b@lls on that Scotsman) and there will be issues between russian national government interests and moscow city government interests that might scupper that idea.

WDIK, PDYOR.

camlad