UPDATE: Gazprom Neft Takes Controlling Stake In Sibir Energy

OAO Gazprom Neft (SIBN.RS) has bought a 23.5% stake in Sibir Energy PLC (SBE.LN) from businessman Igor Kesaev, making the Russian oil major majority owner of the London-listed oil firm.

Gazprom Neft, the oil arm of state-controlled gas giant OAO Gazprom (GAZP.RS), reached an agreement June 22 to buy Orton Oil Company Ltd., the company said late Friday. Orton Oil owns half of Bennfield Ltd., the biggest shareholder in Sibir Energy with a 47% stake.

No financial details were disclosed, but the Vedomosti daily Monday cited an unnamed person familiar with the deal as saying the stake was acquired at a substantial premium to its market value. The paper suggests a price between $770 million and $1 billion, which would indicate a price of more than GBP5 a share.

Gazprom Neft has in recent months been buying minority shares in mid-sized oil company Sibir at GBP5 a share, accumulating a 34% stake. With the stake acquired from Igor Kesaev, the company now controls around 57.5% of its shares. The remaining shares are held by tycoon Chalva Tchigirinsky through his 50% ownership of Bennfield, and the Moscow city government.

Gazprom Neft said it isn't currently in talks with other shareholders. If a decision on buying more shares in Sibir is made "we will conduct talks and, perhaps, reach an agreement on an acquisition," said Gazprom Neft Chief Executive Alexander Dyukov.

Sibir operates the Salym fields in Western Siberia jointly with Royal Dutch Shell PLC (RDSA) and owns half of the Moscow Refinery.

Trading in Sibir shares has been suspended since February, pending investigations into erroneous disclosures about controversial real estate dealings with Chalva Tchigirinsky.

Company Web site: www.gazprom-neft.ru

-By Jacob Gronholt-Pedersen, Dow Jones Newswires; [phone]; [e-mail]