Sidanko Explained

Sidanko also transliterated as SIDANCO (Сиданко; Russian: Сибирско-Дальневосточная нефтяная компания||Siberian-Far Eastern Oil Company) was a Russian oil company, the 8th largest company in the country by revenue in 1995.[1] Sidanko owned several oil production units, including Chernogorneft and Udmurtneft.[2]

History

Sidanko was established through the Decree No. 452 of the Russian government, published on 5 May 1994. The company counted among its assets oil extraction and processing facilities in the Udmurt Republic and in the Khanty-Mansiysk, Yamalo-Nenets, Irkutsk and Sakhalin regions.[3] It was privatized in December 1995, when the Russian government auctioned off a 51% share as part of the loans for shares scheme.[4] The 51% stake was awarded to the bank Mezhdunarodnaya Finansovaya Kompaniya in return for a $130 million loan, guaranteed by Vladimir Potanin's Uneximbank.[5] The company came under the ownership of Uneximbank, which exercised control over it through the Interros holding company.[6]

An additional 34% stake was sold by the government in September 1996,[7] in an auction designed to have Uneximbank as the only admissible bidder.[8] As with the rest of the loan for shares scheme, the Sidanko auction was considered rigged by most analysts. In November 1997 British Petroleum bought a 10% share in the company for $484 million.[2]

Sidanko entered bankruptcy proceedings in February 1999, after ZAO Beta Ekho filed to recover a $22,000 debt.[9] Beta Ekho was later revealed to be a vehicle of Mikhail Fridman's Alfa Group, which was using bankruptcy laws to avenge Fridman's exclusion by Potanin from the Svyazinvest privatization.[10] In September 1999 western creditors agreed to cede their voting rights in the company to Russian government.[11]

Tyumen Oil Company bought Sidanko's Chernogorneft unit for $176 million at a bankruptcy auction in November 1999.[12] [13] [14] [15] In 2001 Interros sold a 44% stake in the company for $650 million.[16] BP raised its stake to 25% in 2002, paying $375 million for a 15% share.[17] In 2003 Sidanko merged with TNK, Onako and the majority of BP's oil assets in Russia to form TNK-BP.[18]

External links

Notes and References

  1. Web site: Рейтинг крупнейших компаний России по объему реализации продукции. raexpert.ru. 3 September 2017. live. https://web.archive.org/web/20170610011245/https://raexpert.ru/rankingtable/expert200/1995/main/. 10 June 2017.
  2. News: Banerjee. Neela. From Russia, With Bankruptcy; A High Cost for BP Amoco's Investment in an Oil Concern. 3 September 2017. The New York Times. 13 August 1999. live. https://web.archive.org/web/20170903211856/http://www.nytimes.com/1999/08/13/business/russia-with-bankruptcy-high-cost-for-bp-amoco-s-investment-oil-concern.html?mcubz=3. 3 September 2017.
  3. News: Правительство создало новую нефтяную компанию. 3 September 2017. Kommersant. 19 May 1994. live. https://web.archive.org/web/20170904011228/https://www.kommersant.ru/doc/78945. 4 September 2017.
  4. News: Russia to Sell Majority of Sidanko. 3 September 2017. Los Angeles Times. live. https://web.archive.org/web/20170923081222/http://articles.latimes.com/1995-10-19/business/fi-58867_1_russian-government. 23 September 2017.
  5. News: Newsline. 3 September 2017. RadioFreeEurope/RadioLiberty. December 8, 1995. live. https://web.archive.org/web/20170904010829/https://www.rferl.org/a/1141065.html. 4 September 2017.
  6. News: Too much trouble. 3 September 2017. The Economist. 8 January 1998. live. https://web.archive.org/web/20170904010843/http://www.economist.com/node/110545. 4 September 2017.
  7. News: Incomplete Privatization Mixes Ownership Of Russia's Oil Industry. 3 September 2017. www.ogj.com. live. https://web.archive.org/web/20170903214829/http://www.ogj.com/articles/print/volume-95/issue-33/in-this-issue/general-interest/incomplete-privatization-mixes-ownership-of-russia39s-oil-industry.html. 3 September 2017.
  8. News: Entrepreneur In The Kremlin. 3 September 2017. Bloomberg. September 23, 1996.
  9. News: Sidanko hit with suit. 3 September 2017. money.cnn.com. February 1, 1999. live. https://web.archive.org/web/20170903212238/http://money.cnn.com/1999/02/01/europe/sidanko/. 3 September 2017.
  10. News: Investors ask which Russian bank domino will be the next to topple. 25 September 2017. IntelliNews. live. https://web.archive.org/web/20170926041952/http://www.intellinews.com/investors-ask-which-russian-bank-domino-will-be-the-next-to-topple-129427/?source=russia. 26 September 2017.
  11. News: Russia handed rights to Sidanko. 3 September 2017. www.fn.com. September 8, 1999. live. https://web.archive.org/web/20170903211257/http://www.fn.com/1999/09/08/worldbiz/sidanko/. 3 September 2017.
  12. News: Tyumen to transfer key subsidiary to Sidanko. 3 September 2017. www.ogj.com. live. https://web.archive.org/web/20170903213129/http://www.ogj.com/articles/print/volume-98/issue-1/in-this-issue/general-interest/tyumen-to-transfer-key-subsidiary-to-sidanko.html. 3 September 2017.
  13. News: КИТАЕВ . Игорь (Kitaev, Igor) . БАНКФОРМИРОВАНИЕ ПЕРЕХОДИТ В НАСТУПЛЕНИЕ: Взяв под контроль все ветви власти, ╚Альфа-групп╩ расширяет свой бизнес . BANKFORMIROVANIE THE OFFENSIVE: Taking control of all branches of power, ╚Alfa-grupp╩ expanding its business . ru . . 19 July 2001 . 20 July 2021 . 3 August 2001 . https://web.archive.org/web/20010803223641/https://2001.novayagazeta.ru/nomer/2001/50n/n50n-s13.shtml.
  14. News: Справка по материалам в отношении руководства финансово-промышленной группы "Альфа" . Help on materials regarding the management of the financial and industrial group "Alpha" . ru . . 21 April 2005 . 20 July 2021 . 15 February 2021 . https://web.archive.org/web/20210215025343/https://graniru.org/Politics/Russia/m.88174.html.
  15. News: Справка по материалам в отношении руководства финансово-промышленной группы "Альфа", часть 2 . Help on materials regarding the management of the financial and industrial group "Alpha", part 2 . ru . . 21 April 2005 . 20 July 2021 . 15 February 2021 . https://web.archive.org/web/20210215093408/https://graniru.org/Politics/Russia/m.88176.html.
  16. News: Whalen. Jeanne. Potanin Reaps Big Gain on Sidanko Sale Despite Firm's Rickety Financial Health. 3 September 2017. Wall Street Journal. 3 August 2001. live. https://web.archive.org/web/20170903211538/https://www.wsj.com/articles/SB996783671932326431. 3 September 2017.
  17. News: Gluttons for punishment?. 3 September 2017. The Economist. 18 April 2002. live. https://web.archive.org/web/20170903210756/http://www.economist.com/node/1091341. 3 September 2017.
  18. News: Timeline: BP's chequered history in Russia. 3 September 2017. Telegraph.co.uk. en. live. https://web.archive.org/web/20170911025127/http://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/8750000/Timeline-BPs-chequered-history-in-Russia.html. 11 September 2017.

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