Moscow, October 15, 2002; Sibneft and Tyumen Oil Company (TNK) have reached agreement on the exchange of shares in TNK International for ONACO assets held by Sibneft. The accord sets out the basic parameters of the deal, meeting all of the requirements set out by the interested parties.
Under the terms of the agreement, Sibneft receives an 8.6% equity stake in TNK International. Sibneft will also receive a place on the board of directors of TNK International, an option to sell its stake to current TNK shareholders, and a guaranteed level of dividends.
TNK International owns 97% of OAO TNK, 91% of ONACO, 29% of OAO Rusia Petroleum, and 78% of Lisichansknefteorgsintez (LiNOS).
Sibneft and TNK are satisfied with the rapid pace of growth at ONACO, which is directly related to its healthy production and financial situation and the system of corporate governance in place at the company.
"I am pleased with our positive relationship with Sibneft," said TNK chairman Victor Vexelberg. "This process attests to the fact that Russian companies are ready to resolve any issue related to joint operations. I am certain that this readiness to demonstrate adherence to the highest international standards of corporate governance will allow them to become full participants in the international business community."
"Our experience in working together at ONACO shows that we can carry out transparent, effective corporate policy. Today, we have entered into a new, higher level of cooperation," said Sibneft president Eugene Shvidler.