Sibir’s Strategy - Four Key Elements

Create an integrated asset base across upstream and downstream sectors to maximise value of production

Having a balanced mix of upstream and downstream asset means that Sibir can realise full value from its crude production. Capacity restrictions in Russia's crude export pipeline system mean that up to 60% of crude production must be sold domestically. Our Moscow refining capability allows us to take advantage of healthy domestic product margins and volatility in domestic/export price differentials to make the most of our domestic barrels "from wellhead to wheel."

Join with visionary Russians and align their interests with those of other shareholders

Sibir is majority owned (65%) by Russian shareholders. Bennfield, beneficially owned by Russian businessmen Chalva Tchigirinsky and Igor Kesaev, holds 47% of the company's shares. Bennfield's shareholders have a demonstrated record of success in the Russian business environment and they have played a critical role in helping acquire and protect Sibir's asset base, provide development financing and manage government relations. The City of Moscow owns approximately 18% of Sibir's shares which were issued when the City contributed its stake in Moscow Oil and Gas Company to Sibir. Having a major Russian state entity with a significant stake in Sibir is especially vital in the curent era of resource nationalism.

Western management and financial reporting standards ensure transparency and access to capital markets. The discipline of the market and a strong shareholder agreement with Bennfield serve to safeguard minority shareholder interests.

Establish strong partnerships for key assets

Sibir's Salym project is a world-class asset by any measure and we've teamed up with a world class operator in Shell to bring it to production. On the downstream we are partnered with BP who has applied best in class retail practice to create one of the most profitable retail operations in the world. In refining and marketing Sibir's partnership with the City of Moscow (now an important Sibir shareholder) provides access to 100 thousand bopd of capacity at the Moscow Refinery as well as network of over 130 retail fuels stations.

Grow the business in core areas

With Sibir's production from existing assets growing rapidly, the company is aggressively evaluating new exploration and development opportunities in our core area to grow our reserves base - first in western Siberia where we already operate and secondarily elsewhere in Russia. Additionally, Sibir plans to increase its access to refining capacity to accomodate its growing production in the coming years thus maintaining a balance between upstream and downstream sectors.