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!

Royal Dutch/Shell looking for third Russia project
14 March 2006

MOSCOW: Oil major Royal Dutch/Shell wants to expand its Russian operations and add a third big project, despite a huge cost overrun at its Sakhalin Energy venture, the firm's Russia chairman Chris Finlayson said.


"I'm looking for a substantive increase in the size of the business, both in Sakhalin and in west Siberia and potentially a third platform," Finlayson said in an interview.

"I think it will be a platform which is based on remote areas, strong technology input, probably Arctic, but a range of different options." Shell is still smarting from ballooning costs at Sakhalin, a huge liquefied natural gas project off Russia's Pacific coast.

It doubled the Sakhalin cost estimate from $US10 billion ($NZ15.67 billion) to $US20 billion last July, dismaying shareholders and angering the Russian government, which says it will now have to wait much longer before it sees any share of the profit.

Shell has sent "truckloads" of documents to the Russian agency investigating the cost overrun, which Finlayson said was caused by booming prices for inputs such as steel, the strength of the rouble and the project's complexity.

Another extra will be $US300 million to re-route pipelines to avoid harming rare grey whales, a decision taken last year.

But Finlayson said revised calculations carried out by top Russian experts showed Sakhalin remained a very good deal for Russia even at a conservative oil price, and he expected the cost negotiations to end during the third quarter of the year.

The cost hike also jeopardised Shell's plan to swap 25 per cent of Sakhalin out of its total 55 per cent holding for a half share of the massive deep deposits of Zapolyarnoye gas field, owned by Russian gas giant Gazprom.

Finlayson did not put a figure on Zapo's gas and condensate reserves, which Shell wants to market in Europe, but indicated there was more in its deposits than Shell has in Sakhalin.

"We are not going to be doing deals which reduce our reserves," he said.

With the value of Sakhalin Energy slashed by the cost overrun, Shell and Gazprom will spend months haggling over the two sides of the swap. Finlayson said the firms' confidential memorandum of understanding included a way of adjusting the value of the swap in case there was a difference in value.

One adjustment will be for Shell's minority partners in Sakhalin Energy, Japan's Mitsui and Mitsubishi, to give up some of their equity in the project, in which they hold 25 per cent and 20 per cent respectively.

"I think it's an excellent illustration of the strong alignment of the current shareholders in wanting to have Gazprom in this project," said Finlayson.

It is not clear what the Japanese firms will get in return.

Despite the cost overrun and a delayed first delivery date, Sakhalin Energy has sold virtually all its production capacity and is looking to expand. Its infrastructure would allow four LNG production trains instead of the current two.

"Whilst clearly the company must focus on delivering the first two trains of this massive project, you don't sit and wait until that's completely finished before you start thinking about more than that," Finlayson said.

Aside from Sakhalin, Shell is also looking for oil production opportunities, possibly expanding its west Siberian oil production joint venture, Salym Petroleum Development.

"We certainly have an aspiration to grow that position in west Siberia. Our preferred route is. . . new field development rather than the purchase of mature assets. So we're on the look-out for more." Salym, which is set to be producing around 165,000 barrels of oil per day by the end of the decade, is jointly owned by London-listed Sibir Energy, but Finlayson said Shell had no plans to buy out its joint venture partner.
Much of Russia's oil production growth in the last 15 years has come from using technology to eke more out of existing fields, but Finlayson said that trend would soon have to end.

"There are lots of undeveloped resources in Russia and the time is rapidly coming when attention will have to be paid to changing that exploration acreage into new development.

"That's where we're focusing at the moment," he said.

Shell was looking at the "whole periphery", including new areas of west Siberia, the undeveloped but remote fields of east Siberia and the Arctic, where changes in the sea ice were making the coast much more accessible and a likely home for another LNG terminal in the future, he said.

"We are keen on growing new positions over the short to medium term and starting to develop a third major platform in Russia. There are a number of things being looked at," he said.

"We are strong in LNG and LNG would be a good place, but we also have to see what else is possible."

An aquasition is on the cards by Shell although don't know any more details. A project with a Codename had been set up in the same way as that when Shell bought Enterprise.

More good info LB!! Thanks.

Meanwhile: a bit of a Bounce late morning/midday, up 4 on the day. Nice to see some blue after all this red! Hope it stays this way, although I'm a bit bothered that buyers of those 20 million shares that were recently placed at 400p might rush to sell for some early profit-taking in a couple of days when the stock is admitted for trading.

BTW I notice VOG is experiencing a similar bounce; meanwhile NOP, which has been rising like crazy the last few months, has dropped 4.

And later the same day: up 6.5p on the day.

RNS announces receipt of last tranche of cash, $202,316,747 for shares placed with Orton/Bennfield, bringing the total received to $620,358,052, or 235.25 million. Approx another 80 million are due to be confirmed on Monday 20th March from the 20 million open placing shares, giving SBE a cash pot of 315 million.

Production is also up to 26,000 bbl/day (13,000/day net to Sibir).

The RNS states:

Commenting on the announcement, Sibir CEO, Henry Cameron, said, 'This is a very
important development for Sibir as the company celebrates its tenth year of
activity. The funds received as a result of the subscription for these shares,
together with and the non pre-emptive share placing of 20,000,000 shares,
details of which will be announced on the 20th of March, will eliminate all
company borrowings and will provide the necessary cash to fund Sibir's remaining
commitments at the Salym project where production has increased in the space of
two and a half months to over 26,000 barrels a day and growing. Every bit as
important as the cash injection is the strengthening of the ultimate shareholder
profile. Much of Sibir's recent success is attributable to the dynamic role
played by its key Russian shareholder and the events announced today broaden the
scope of influence which the Russian shareholder brings to the company. This
behind us, we are able to concentrate our efforts on the recovery of our share
of Sibneft Yugra and get on with our announced plans to expand our production
and reserves in new projects.'

RNS today:

Sibir Energy PLC - Moscow Refinery Update
RNS Number:0030ASibir Energy PLC17 March 200617 March 2006 Sibir Energy plc ('Sibir')
Moscow Refinery Wins Court Case
Sibir announces that the Federal Arbitration Court today issued a final rulingin favour of the Moscow Oil Refinery ('MOR') striking down claims of Joy LudInternational Distributors ('Joy Lud') to enforce payment of $28 million inpunitive damages levied by the Stockholm Arbitration court against MOR.In 2004 Joy Lud filed suit for $300 million against MOR in the StockholmArbitration Court for losses and penalties claimed in connection with oilproduct supply agreements it had with MOR in the mid-1990s. The Stockholm Courtrejected the claims for losses and upheld a judgement against MOR in the amountof $28 million for penalties in connection with these dealings. In its decisiontoday, the Federal Arbitration Court upheld a December 8, 2005 decision rulingthat there was no legal basis under Russian law for upholding the Stockholmjudgement.Commenting on the ruling Sibir CEO, Henry Cameron, said, 'Sibir welcomes theoutcome of today's court decision and we are pleased that, under the managementof Moscow Oil and Gas Company, MOR has successfully defended itself againstthese erroneous claims.'

RNS out today:

>> Sibir Energy in placing of up to 20 mln shs through bookbuilding at 392p/shr
LONDON (AFX) - Sibir Energy PLC said it is launching a bookbuilt cash placing
of up to 20 mln new ordinary shares to shareholders at 392 pence each, as
approved at the company's EGM on Jan 27.

Demand for the placing will be determined through a bookbuilding process and it
is expected that the books will close no later than 4.30 pm today. <<


SP likely to drop later this week as the institutions lock in some instant profits ?? There is no lock-in period; placing shares will be admitted for trading on 23rd March.

Up 7p yesterday, up 4p this morning and with a very tight spread at 468/469.75. Is this the end of the recent slide?

Good news all the way for those still holding: today we're firmly back over 5. Bid: 510.5p Offer: 514.75p Change: 16.5

RNS last week announced latest improved production levels. Alas I baled out of my holding about a fortnight ago to pursue other opportunities and have forfeited about 40p a share. My Dad's still in, though, so he'll be pleased . . . .

More progress - RNS out today:

>> Sibir Energy PLC - Salym Power Plant Approval
RNS Number:4912BSibir Energy PLC13 April 200613 April 2006 SIBIR ENERGY plc Gas Turbine Power Plant Approved for Salym FieldsSalym Petroleum Development, NV, Sibir's 50:50 joint venture between itssubsidiary OAO NK Evikon and Shell dedicated to the development of the Salymfields in western Siberia, announced today that the shareholder SupervisoryBoard has allocated $54.9 million for the construction of a Gas Turbine PowerPlant at the Salym fields. Preparatory works on the project this year areexpected to cost $20.4 million and will bring the Salym project budget for 2006to $410 million.The 43.5 MW Gas Turbine Power Plant, to be constructed at West Salym, willensure stable supply of electric power for the Salym Project field facilitiesand will use associated gas from the fields. The facility is expected tocommence operation end 2007 - early 2008.Commenting on the SPD announcement, Sibir CEO, Henry Cameron, said, 'Theconstruction of the Gas Turbine Power Plant will help ensure uninterruptedgrowth in production at the Salym fields by providing a reliable andcost-effective electricity supply to the fields. This project also allows SPD todiscontinue flaring which will improve the environmental performance of theproject in accordance with international best practice.' <<

It gets better.

Print article | Email
Sibir Energy PLC - Production Update
RNS Number:9199BSibir Energy PLC25 April 200625 April 2006 Sibir Energy plc ('Sibir') Production UpdateSibir announces today that its total crude oil production rate for the weekbeginning April 24, 2006 averaged in excess of 25,000 barrels per day (bpd), amaterially new high for the company.Over 18,000 bpd of production is now represented by Sibir's 50% share of outputat the Salym group of fields, operated by Salym Petroleum Development, NV('SPD') - Sibir's joint venture with Shell in western Siberia - which is nowproducing in excess of 36,000 bpd.The balance of Sibir's daily production for the week of over 7,000 barrels perday was provided by OAO Magma, a production subsidiary 95% owned by Sibir whereproduction is expected to remain stable at current levels.Commenting on the achievement of this production milestone, Sibir CEO, HenryCameron, said, 'Today's announcement shows a 3,000 barrel a day productionincrease for Sibir in less than a month, demonstrating that production growth atthe Salym group of fields is proceeding smoothly towards its planned year-endtarget of 60,000 bpd (30,000 bpd Sibir share).'

Sibir Energy PLC - Sibneft Yugra Update
RNS Number:0010D Sibir Energy PLC 16 May 2006
16 May 2006 Sibir Energy plc ('Sibir')
BVI Appeal in Sibneft Yugra Case

Sibir has been advised by its English lawyers that upon completion of hearings in the BVI to secure jurisdiction against Sibneft and others in the SibneftYugra affair it became apparent that Sibir had lost its appeal. Neither Sibir nor its lawyers are aware of any formal judgment having been issued but Sibir has noted that Sibneft has announced a victory in this respect on their website. Sibir therefore makes this announcement to ensure an orderly market for all shareholders.Commenting on this announcement Sibir CEO Henry Cameron said 'Without establishing jurisdiction in the BVI our proceedings there can go no further. Sibir has from the moment it discovered the dilution openly recognised that finding a resolution to the dilution would be a long and arduous task but right is on our side and we will diligently and exhaustively pursue the other alternatives open to us until we get an acceptable result.'

Interesting RNS, above. I didn't think that SBE's SP had priced in the likelihood of a return of the Sibneft-Yugra stake.

However, in the current market conditions it's bear-runs all the way.

Given recent production updates, etc., I'm beginning to wonder if SBE is once again looking a little cheap.

WDIK, PDYOR etc.

Down 25% over seven trading days with today's fall just about the biggest. I would be interested to see when and where this stops skidding, as the word "bargain" is beginning to cross my mind, although "dirt cheap" is still hanging back and biding its time.

SBE Bid: 421p Offer: 422p Change: -55

.

iam still holding this company for 6000 worth of shares !! do i stay abit longer with this company?

Morning to anyone interested in SBE. Cracking set of results today and it looks like there could be resolution to the Sibneft dispute. I left this one in February but time to now re-examine I believe.

Any views?

This Russian oily is plunging like a brick.

No support at 400p. Expect SBE to reach 250p as oil price and demand are low

238p currently. Looks like it would go below 200p as oil price going down towards $65 soon

Unbelievable now less than 40p.