Upper Salym
December 22 2003 - 8:18AM
UK Regulatory
RNS Number:5523T
Sibir Energy PLC
22 December 2003
Sibir Energy plc ("Sibir")
Upper Salym
Sibir draws the attention of its shareholders to the following press release
made today by Salym Petroleum Development N.V., the joint venture between Shell
Salym Development B.V. and Joint Oil Stock Company Evikhon (Sibir's 82 per cent.
owned subsidiary), which is pertinent to Sibir's interest in Upper Salym:
"Salym Petroleum Development N.V. Regains Operatorship of Upper Salym
Salym Petroleum Development N.V (SPD) is pleased to announce that on 18th
December, 2003 it has entered, together with its 50/50 shareholders Shell Salym
Development B.V. ("Shell") and Joint Stock Oil Company Evikhon ("Evikhon"), into
a binding agreement to restore the operatorship of the Upper Salym oil field to
SPD with effect from 1st January, 2004. From that date SPD will be operator of
all three of the Salym fields, namely Upper Salym, West Salym and Vadelyp.
Since Year 2001, the Upper Salym field has been operated by one of the SPD
shareholders, Evikhon, on a sole risk/sole reward basis while SPD retained
operatorship for West Salym and Vadelyp. SPD and its shareholders have concluded
that having two operators for the development of the Salym fields was neither
efficient nor in the long-term interest of all parties involved in the
development of the Salym fields.
Under the terms of this agreement, SPD is obliged to compensate at cost all
expenditures incurred by Evikhon on the Upper Salym Field during its sole risk
period. The shareholders of SPD are each liable to contribute to SPD 50% of
these expenditures. SPD expects to engage almost all of the Evikhon staff
currently working in the Upper Salym field.
SPD and Shell wish to acknowledge that Evikhon's sole risk activity on Upper
Salym made a significant and timely contribution towards compliance with the
relevant license agreement.
SPD will now proceed with the full-scale development of the Salym fields in
accordance with development plans approved by the relevant authorities. Earlier
this year SPD announced the development of the Salym fields with a budget of
over $1 bln."
Enquiries:
Sibir Energy plc
Henry Cameron
00 7 095 792 3045
Strand Partners Limited
Richard Fenhalls
00 44 (0)20 7409 3494
Canaccord Capital (Europe) Limited
Pav Sanghera
00 44 (0)20 7518 7356
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCMGMZZFZVGFZM