Sibneftga

Company Description

TradeVerify Sibneftgas was one of the last vertically integrated oil companies to emerge from the reorganization and large-scale privatization of Russia’s oil industry in the years following the dissolution of the Soviet Union.Initially, Sibneftgas was established in 1993 as a state enterprise on the basis of assets previously held by Rosneftegaz, the successor to the USSR Ministry of Oil and Gas. In 1995, a Russian government decree transformed Sibneftgas into an open joint stock company (OJSC).From 1995 to 1998, Sibneftgas’s management changed constantly and as a result its assets Sibneftgare left largely unmanaged. Oil production fell and oil refining collapsed to just one third of production capacity. The turnaroundIn October 1998, the Russian government decided to strengthen the Company’s management so that Sibneftgas could once again become a key player on the Russian energy market. The government appointed the Company’s current president, (C.E.O) Mikhalov N. Nikolaevich.The new management team under Bogdanchikov immediately began to implement bold plans which ultimately lifted the Company out of the crisis.As a result, Sibneftgas had become profitable again by 2000, and from then on, the Company began a new period of strong growth, with average annual oil production increases of over