Sibir announces that on Friday, 19 December 2008 it reached agreement with the TNK-BP joint venture on the sale of Sibir's 25-percent-plus-one-share stake in a retail network of 56 BP-branded service stations in Moscow and the Moscow Region for a consideration of $152.7 million to, be received by Sibir by the end of January, 2009.

It is expected that the proceeds of this sale will be re-invested in the development of the Company's MTK and Nefto branded network in Moscow and for general working capital purposes.

In the year to 31 December 2007 Sibir's share of net profits in STBP was approximately $21 million.

Commenting on the announcement, Sibir CEO, Henry Cameron, said, "Sibir has ambitious plans for expansion of its majority-owned retail assets which number over 130 units and trade under the MTK and Nefto brands in Moscow and the Moscow Region. A divestiture of its stake in the BP-branded retail network will allow Sibir to streamline and concentrate its retail assets in majority-owned assets and provide cash for accelerated development.

The value of this asset represents a very small proportion of Sibir's total oil asset portfiolio and yet the proceeds of the sale represents approximately 25% of our current market capitalisation which demonstrates, in my view, the extent to which our stock is undervalued."

Tags: Sibir Energy, TNK-BP