Russia: Shell Considers Asset Swap with Sibir

The oil major has held initial talks about the asset swap with London-listed Sibir Energy, its equal partner in the Salym oilfields venture in western Siberia, which is expected to produce 45m barrels of oil this year. The deal could entail Shell handing over its stake in return for a holding in Sibir.  Shell declined to comment, but a spokesman said the company had "learned our lesson in Russia" after the forced sale of half its stake in the $22bn Sakhalin-II oil and liquefied natural gas field, off Russia's east coast, in 2006 to state-owned Gazprom.

The move comes as Shell's rival BP remains embroiled in difficulties in Russia over its joint venture, TNK-BP. Despite the Kremlin's influence over the exploitation of Russia's resources, Jeroen van der Veer, Shell's chief executive, has said he is keen to expand its presence in the country.  Sibir, which runs oilfields in Siberia, a refinery in Moscow and a petrol station chain, is listed on the alternative investment market and is valued at £2.4bn. About 67pc of its shares are in Russian hands, including 18pc held by the City of Moscow and 47pc by businessmen in the country.

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