Sidanko

Sidanko (Сиданко; Russian: Сибирско-Дальневосточная нефтяная компания, lit. '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.[9] 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.[10] 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.[11] In September 1999 western creditors agreed to cede their voting rights in the company to Russian government.[12]

Tyumen Oil Company bought Sidanko's Chernogorneft unit for $176 million at a bankruptcy auction in November 1999.[13] In 2001 Interros sold a 44% stake in the company for $650 million.[9] BP raised its stake to 25% in 2002, paying $375 million for a 15% share.[14] In 2003 Sidanko merged with TNK, Onako and the majority of BP's oil assets in Russia to form TNK-BP.[15]

References
  1. "Рейтинг крупнейших компаний России по объему реализации продукции". raexpert.ru. Archived from the original on 10 June 2017. Retrieved 3 September 2017.
  2. Banerjee, Neela (13 August 1999). "From Russia, With Bankruptcy; A High Cost for BP Amoco's Investment in an Oil Concern". The New York Times. Archived from the original on 3 September 2017. Retrieved 3 September 2017.
  3. "Правительство создало новую нефтяную компанию". Kommersant. 19 May 1994. Archived from the original on 4 September 2017. Retrieved 3 September 2017.
  4. "Russia to Sell Majority of Sidanko". Los Angeles Times. Archived from the original on 23 September 2017. Retrieved 3 September 2017.
  5. "Newsline". RadioFreeEurope/RadioLiberty. December 8, 1995. Archived from the original on 4 September 2017. Retrieved 3 September 2017.
  6. "Too much trouble". The Economist. 8 January 1998. Archived from the original on 4 September 2017. Retrieved 3 September 2017.
  7. "Incomplete Privatization Mixes Ownership Of Russia's Oil Industry". www.ogj.com. Archived from the original on 3 September 2017. Retrieved 3 September 2017.
  8. "Entrepreneur In The Kremlin". Bloomberg. September 23, 1996. Retrieved 3 September 2017.
  9. Whalen, Jeanne (3 August 2001). "Potanin Reaps Big Gain on Sidanko Sale Despite Firm's Rickety Financial Health". Wall Street Journal. Archived from the original on 3 September 2017. Retrieved 3 September 2017.
  10. "Sidanko hit with suit". money.cnn.com. February 1, 1999. Archived from the original on 3 September 2017. Retrieved 3 September 2017.
  11. "Investors ask which Russian bank domino will be the next to topple". IntelliNews. Archived from the original on 26 September 2017. Retrieved 25 September 2017.
  12. "Russia handed rights to Sidanko". www.fn.com. September 8, 1999. Archived from the original on 3 September 2017. Retrieved 3 September 2017.
  13. "Tyumen to transfer key subsidiary to Sidanko". www.ogj.com. Archived from the original on 3 September 2017. Retrieved 3 September 2017.
  14. "Gluttons for punishment?". The Economist. 18 April 2002. Archived from the original on 3 September 2017. Retrieved 3 September 2017.
  15. "Timeline: BP's chequered history in Russia". Telegraph.co.uk. Archived from the original on 11 September 2017. Retrieved 3 September 2017.
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