On February 14, the Board of Directors of Sibir Energy adopted a resolution to reduce the company's share capital by 86.25 mln. shares (22.39%). Affiliated to the Moscow government, Central Fuel Company (Tsentralnaya Toplivnaya Kompaniya, TsTK) took a decision to withdraw membership in Sibir Energy.
Consequently, Gazprom Neft becomes a sole shareholder in Sibir Energy starting from February 15. TsTK will receive compensation for the previously held block of shares in Sibir Energy in the amount of $740 mln.
Sibir Energy plc is a vertically integrated company with upstream operations in the West Siberia and downstream operations in Moscow and the Moscow Region. The key upstream assets include JSC Magma (with 95% of the stock held by Sibir) and a 50% stake in Salym Petroleum Development (SPD), a joint venture with Royal Dutch Shell.
Sibir Energy owns a share in the Moscow Refinery and a network of 134 filling stations in Moscow and the Moscow Region. Together with Gazprom Neft, Sibir Energy controls 77 % of the share capital of the Moscow Refinery or 90% of the entity's voting shares.
Gazprom Neft began to acquire shares in Sibir Energy in April 2009. In June Gazprom Neft increased its shareholding in the company up to 54%, and later increased it to 77%.