BP Amoco to Get Control of Sidanko Oil

BP Amoco will get management control of Russia’s Sidanko oil company under an agreement that salvages the British-American oil company’s half-billion-dollar investment in Russia. The deal restores BP Amoco’s authority over a prized Siberian oil field that was bought this fall by Tyumen Oil, a major Russian oil company, at an auction BP Amoco claimed was illegal. Chernogorneft, a bankrupt Russian oil producer, was a unit of Sidanko, in which BP Amoco holds a 10% stake. Chernogorneft produced 6.8 million tons of crude oil last year and the sale reportedly left Sidanko with just a quarter of its former crude oil assets. BP Amoco complained that the Russian government approved the bankruptcy auction despite its offer to settle Chernogorneft’s debts. BP Amoco had warned that it might pull out of Russia altogether if Sidanko lost Chernogorneft. The soured investment had come to symbolize the problems faced by foreigners who invest in Russia. BP Amoco shares fell 44 cents to close at $60 on the NYSE.