Russian oil major OAO Gazprom Neft (SIBN.RS) has reached an agreement with the Moscow city government to jointly manage troubled oil firm Sibir Energy PLC (SBE.LN), the Kommersant daily reports Thursday, citing an unnamed source close to the talks.
Gazprom Neft, the oil arm of state-controlled gas giant OAO Gazprom (GAZP.RS), last week moved to take operational control over London-listed Sibir Energy by appointing a Gazprom Neft insider, Igor Tsibelman, as new chief executive.
But Monday, Gazprom Neft - which has in recent months accumulated 34% of shares in London-listed Sibir Energy - reversed the move, pending talks with the remaining shareholders, which include the Moscow city government with an 18% stake.
Following talks with Moscow mayor Yuri Luzhkov Wednesday, Gazprom Neft CEO Alexander Dyukov agreed to let Moscow city representatives on to Sibir's board and to discuss strategic decisions with the city, the newspaper reports, citing the unnamed source.
Sibir and Gazprom Neft jointly operate the strategically important Moscow Refinery. The Moscow city government has repeatedly tried to block Gazprom Neft's efforts to take control of the 200,000 barrels of oil a day refinery.
According to the newspaper, Gazprom Neft is close to finish talks with remaining key shareholders Igor Kesaev and Ruslan Basarov, who hold 23.5% stakes each in Sibir, to buy their shares.