Sibir Energy Share Discussion Threads

[davidwilkin] 31/3/2009 09:01

no wonder its taking a while to sort out.......just remember 50% of 160,000 BOPD and world class assets......is this enough ??, only time will tell but im confident of making a tidy profit longterm.

Whats your take on things Leeson, i know youve been here for a long time and are well respected on the AFR board ??

[thumper1] 30/3/2009 17:35

I hope so what a mess.

[yf23_1] 30/3/2009 14:18

I'm a bit lost now, exactly what assets are his loan from Sibir secured against.
I seem to remember the buildings assets were cancelled, and if so do we have his shares as security ?

[willessa] 30/3/2009 11:04

Shalva Chigirinsky lost his post as president of the Moscow
Oil & Gas Company to a representative of the Moscow city
government, which co-owns the Moscow refinery operator with
Chigirinsky's Sibir Energy (SBE.L), Vedomosti said. He also
handed his development projects to his brother.


Not too encouraging...

[leeson31] 28/3/2009 07:52

i decided to golong lloyds y/day and took 4 points profit quickly, wrong choice eh, should have gone to specSavers, err, Barclays eh.... :p

[davidwilkin] 27/3/2009 21:59

Kibes, im expecting to see it come back to market and a bid made around £3 share shortly after, the oil price must be 10$ higher now than when sibir was suspended, news imminent i certainly havnt written my money off i was amking a nice profit and have 40% of my portfolio in here......more fool me, the money i could have made if it hadnt been tied up in here, AFRen and Barclays just 2 of the stocks i would have been in.

[kibes] 27/3/2009 20:18

Anyone know what's going on here? I suppose the banks will foreclose on the assets and shareholders will be wiped out? I have written it off anyway. Just another Russian disaster.

[willessa] 26/3/2009 09:19

Good to see BAU is carrying on...

[banj] 25/3/2009 19:53

HOUSTON, Mar 25, 2009 (BUSINESS WIRE) -- Halliburton (HAL:Halliburton Company
News , chart , profile , more
Last: 17.22-1.07-5.86%

3:49pm 03/25/2009



HAL 17.22, -1.07, -5.9%) has been awarded a major contract extension by Salym Petroleum Development N.V. (SPD) for exploration and production services in Western Siberia, Russia. Valued at approximately (USD) $100 million, the four-year contract calls for the provision of directional-drilling, measurement-while-drilling and logging-while-drilling, along with drilling fluids and cementing services and continues Halliburton's proven record of service delivery in the SPD fields for the last three years. The new wells to be drilled, with an average true vertical depth of 2,600 meters, include 400 S-shaped wells, plus directional and extended-reach wells.
The SPD oilfields -- located in Khanty-Mansiysk Autonomous Okrug, 120 kilometers southwest of Surgut -- include West Salym, Upper Salym and the Vadelyp fields.
"SPD's 'drilling-the-limit' approach challenges us to continuously improve our performance," said Iain Dowell, Halliburton's country vice president for Russia. "We have established a high benchmark in terms of well quality and deliverability for its Russian drilling operations."
Halliburton's proven capabilities delivered under the initial contract include:
-- Establishing a record drilling time of 5.6 days, when the average drilling time for S-shaped wells in Western Siberia ranges between 23 and 28 days for wells up to 2,800 meters deep;
-- Customizing Halliburton's BOREMAX(R) II high-performance, water-based drilling fluid system to reduce treatment cost per foot drilled and minimize the environmental impact; and
-- Delivering zonal isolations for the life of the well through deployment of dedicated crews and harsh-environment cementing units.
About Halliburton
Founded in 1919, Halliburton is one of the world's largest providers of products and services to the energy industry. With more than 55,000 employees in approximately 70 countries, the company serves the upstream oil and gas industry throughout the life cycle of the reservoir - from locating hydrocarbons and managing geological data, to drilling and formation evaluation, well construction and completion, and optimizing production through the life of the field. Visit the company's Web site at www.halliburton.com.
SOURCE: Halliburton

[bethany3] 21/3/2009 20:22

willesa.....do not hold but sincerely hope all of you in do get your investment back. COCO the clown, SBE resident voice box, was last reported plying his trade in Aviva (AV.)

[ammons] 16/3/2009 12:13

Do they still own it? Has Mr. T siphoned it off the same way he did with the hidden possibly irrecoverable loans? The company is still investigating. I hope the damage isn't too serious.

[willessa] 16/3/2009 11:40

Just to remind ourselves that they do own 50% of a world class field:




(March 2009)

SPD Drilling Success: The Best of Russia Teams Up With the Best of the West
Salym Petroleum Development N.V. (SPD) is a joint venture established on a 50:50 basis by Shell and Russian oil company Evikhon controlled by Sibir Energy plc. Since 2003, SPD has been developing the Salym group of oilfields, which are located in the Western Siberia, with the licence area totalling 2,141.4 sq. kilometers.

By Alexei Chesnokov

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The Salym fields' recoverable С1+С2 category oil reserves approved by the Russian Federation State Committee on Reserves (GKZ) amount to 152.6 million tons.

The Salym oilfields development is the largest onshore investment project with foreign capital in the Russian oil industry. The total investment in Salym project amounts $1.5 billion. SPD is one of the youngest companies in the oil industry of Western Siberia. As early as in the summer of 2006, three years after starting the project, SPD joined the ranks of the Russian oil companies with the annual production exceeding one million tons.

The success of the Salym project is tightly combined with the integration between Western and Russian technologies, which is really a key issue for SPD. And in this case we are talking not only about a combination of technologies but Western and Russian experience and culture as well. In essence, the company's success is based on a few key elements. First of all, it was assumed that with more than 40 years of experience of oil and gas field operations in the West-Siberian basin, there were many best local practices available already and SPD had to readily and quickly adopt these. Then was identified the specific areas where the addition of selected international technologies and techniques – offered by companies such as Shell – would significantly improve performance. Thirdly, company created an environment where creativity, innovation and learning would flourish. And finally, company surrounded this with a culture where continuous joint improvement, between company staff contractors, was the norm. This approach has really paid dividends, and there are some specific examples.

SPD currently have four rigs active, and all of them were built by a Russian Uralmash company. Before starting the drilling operations rigs were modified, amongst others by installing a Western "top drive", which is safer, more efficient, and expands the rig's functionality. It resulted in a significant increase of drilling rate and mitigation of risks of well problems and complications (even exclusion on some stages). Moreover, these rigs are operated by the Russian Siberian Service Company (SSK) and the western company KCA Deutag. It's a very good and successful integration and a ground for sharing experience. Also healthy competition between the contractors is for the benefit of the business.
"When we began our operations, we noticed that the concept of performance improvement was not very well understood. For instance, we found some very competent local contractors who we thought could perform even better, and, rather than working on a lump sum or turn-key basis, we decided to offer them performance-based incentives. Now their performance is excellent, in some cases much better than that of international contractors who do the same kind of work," explains SPD CEO Harry Brekelmans.

In SPD, many so-called sub-horizontal wells penetrate the producing formation at 80 to 85 degree angles. This provides the opportunity to increase oil recovery and optimise the number of wells. Currently, SPD keeps four rigs and seven hoists employed continuously, with an eighth hoist soon coming into operation. In 2007, SPD drilled 295 kilometers and in 2008 increased this figure up to 305 kilometers with 106 delivered wells.

The first SPD's well was drilled within 33 days, whereas the average drilling time to date is less than 11 days. In September 2008, SPD set a new drilling record – a well of 2,530 meters was delivered in 5.6 days. It's a success for SPD and Russian oil and gas industry on the whole, as according to industry experts the average drilling time for similar wells under similar geotechnical conditions in Western Siberia is 18 to 20 days.

The company's drilling performance has been recognised externally. SPD Well Engineering department has been a winner of the Shell EP Global Performance Awards for Well Delivery and Completions and Well Interventions on three separate occasions.

"Our facilities are operating around the clock, with very high reliability, and they are run by high-quality people. In the end, it comes down to building effective partnerships. If you work in true partnership with your contractors and suppliers, you can get a lot of inefficiency out of the system," says Harry Brekelmans.

SPD employs the same approach in coring, logging and well completion using new technologies. When coring started four years ago, SPD cut the reservoir per 6 meters or 12 meters at a time. SPD brought a bit of its own experience, and together with the contractor, SibBurMash, was able to progress up to 18-27 meters and now routinely to 36 meters. What previously required 5 to 6 days work is now taking SPD about two days. In 2008, a 48.5m length of core was recovered from a well in the West Salym field. The well was cored in one run with 100 percent recovery. These 48.5 meters in one run is the longest core recovered from the Salym fields to date.

SPD used a combination of Western and Russian technologies in their downhole production equipment. Well completions are run with Russian-manufactured ESP, produced by Borets, Novomet, Alnas plants, and Y-tools provided by Zenith Oilfield Technology ltd. The advantage of this technology is the ability to run production-logging tools below a working ESP at any point in time during production without pulling the completion string. Flow rates in different perforation intervals and other valuable information will now be collected for production optimization and enhanced recovery plans.
SPD are continuing to explore the Salym oil fields as part of it's plans and exploration commitments and have already discovered seven oil accumulations, including four in 2008 only. But there is still much work to be done and further exploration wells will be realized over the coming years. There is a phased exploration plan for the next few years and at this stage it is too early to say how many wells will be drilled. Based on the current seismic data a number of structures have already been identified as potential for future drilling.

Fred Van Nieuwenhuizen, SPD Well Manager, talks on the specifics of the company's work

Oil&Gas Eurasia: What is your company special approach to the drilling problems?
Fred Van Nieuwenhuizen: Contributing factors of the success especially at the start of the project was the support of the Shell "global'' technical expertise holders. Integrated project Management Skills combined with introducing the DTL (Drilling the Limit) concepts resulted in performance gains which then started generating momentum and ignited the performance culture (rDTL) which is now fully embedded into the organisation as second nature. Currently further enhancing it into "Drilling the Economic Limit".
OGE: What technologies were employed at the project and why?
Van Nieuwenhuizen: Before drilling operations started in April 2004, the Russian well construction practices, materials and drilling equipment were studied. The study lasted for about one year and involved frequent site visits to Siberia. Based on the findings a well construction strategy was developed, that is based largely on Russian well construction materials, top end Russian drilling equipment, such as the Uralmash BU 3900 and 4500 drilling rigs, and Russian oil field services, and combines them with those Western services and equipment that offer a clear advantage on overall drilling performance. Examples are utilization of Western top drives, solids control equipment and performance downhole motors and MWD systems, PDC – polycristaline diamond bits.
OGE: Does your company employing automation processes in drilling?
Van Nieuwenhuizen: This depends on what detail of automation is considered. SPD is using individual units which have a high level of automation like cementing trucks are computerized and Top drive system, but not using fully automated drilling systems with automatic pipe pick-up lay-down systems. This is due to the availability on the local market, as well as repair and maintenance capabilities and cost.
OGE: Why drilling becoming now more and more expensive?
Van Nieuwenhuizen: There are several ways of looking at it. If you look at it only on a cost basis it's mainly due to RF inflation, equipment and services cost) and exchange rates effects. On the other hand technology improvements made over the last few years are more expensive but cost efficient to use.
OGE: Why do you use drilling rigs from the local market?
Van Nieuwenhuizen: SPD uses Uralmash Drilling Rigs for the reason that that was "standard" used by our contractors and spare parts and maintenance items are readily available.

[bethany3] 15/3/2009 20:45

Oh dear, not good but good luck all!

[ammons] 11/3/2009 06:41

Thanks willessa.



I see our departed friend COCO has re appeared at Aviva. Perhaps he has found a home for the proceeds from the SBE shares he claims to have sold 10 seconds before they were suspended...................

[willessa] 10/3/2009 09:11

Sberbank Gets Sibir Shares



Sberbank holds the full 47 percent of Sibir Energy shares owned by Igor Kesayev and Shalva Chigirinsky as collateral for loans, Vedomosti reported, citing two unidentified people familiar with the loan terms.

Kesayev pledged his stake in Sibir to back a loan of almost $649 million, Vedomosti said. The market value of his stake has dropped 67 percent since the loan was offered in October 2007, and annual payments will probably exceed the income from his holding, the newspaper said.

Kesayev doesn't face a margin call or a payment demand on debt because the loan is secured by some of his other businesses, Vedomosti said, citing Robert May, a spokesman for asset manager Mercury Group.(Bloomberg)

[bethany3] 04/3/2009 21:31

david......if a foreign oiler was allowed to buy SBE in full then 300p is still feasible but significantly less if the offer is from a Russian oiler. Nevertheless should an offer come from a Russian oiler foreign major holders would just "bite the bullet" and accept and be glad to be out of SBE for good as similar practice is not uncommon in Russia. That's why I think so many Russian companies in AIM with vast potentials are no longer valued as they once were.

[bethany3] 02/3/2009 14:31

kibes......Major Luzhkov and maybe one of the Russian oilers thro' Sberbank. Mr T and Mr Cameron, to me, are "history". Mr T's standing in Russia had taken a severe knock when the City of Moscow rejected their resolution.

[kibes] 27/2/2009 08:51

bethany3 - who do you think is going to dismiss Cameron? The Board? It consists of himself and Tchigirinsky plus cronies, why would they vote against him? He put them there. Shareholders? Tchigirinsky still controls more than 50% of the votes, basically it is his company and other Sibir shareholders are just minority shareholders who have to do what they are told (which includes Cameron). There is a long history of minority shareholders getting totally stuffed in Russia. The only person who will definitely come out of this well is Mayor Luzhkov who controls the City of Moscow. He's probably discussing with Tchigirinsky how to divide up the spoils right now. This is a big opportunity for him to grab an oilfield which is just what he needs to escalate his wealth to the Abramovich league.

Of course Tchigirinsky and Luzhkov may decide it suits their purposes to throw Cameron to the wolves. Stay or go, it won't make any difference either way.

[davidwilkin] 25/2/2009 20:24

what now, more dodgy russians to be appointed, wheres Peter Levine at present we could do with him to sort this big mess out.

[bethany3] 25/2/2009 19:03

Mr Cameron's suspension is a prelude to dismissal I have no doubt. The company is just going thro' the statutory procedure to avoid any legal comeback. Mr Cameron should have put his corporate responsibilities before anything else and not favouring a principal shareholder at the expense of others. Also, he should not be compensated for the lost of office either as he has brought it upon himself.

If not for the City of Moscow officials rejection of the real estate resolution at the egm highly unlikely this saga would have come to light. Or could it be the Finance Director who left at short notice that blew the whistle? Whoever, did SBE shareholders a massive favour otherwise the two principals concerned would have used the company as a private entity to feather their own nests.

[miamisteve] 25/2/2009 16:28

Finance director resigned on 3-12-08. More to that then meets the eye. As far as
i am aware he has never been replaced. No ceo, no fd.

[leeson31] 25/2/2009 14:33

you never knwo where his dosh came from. token gesture imho Squinty....