Get the latest updates as we post them — right on your browser

. Last Updated: 07/27/2016

Sibir Intends to Buy Refining Assets

Sibir Energy, the oil company partly owned by billionaire Shalva Chigirinsky, will pay about $922 million to Moscow's Central Fuel Company to increase its control over refining assets in the capital, the London-based company said Friday.

Sibir will pay $200 million in cash and hand over 69.7 million shares to state-owned Central Fuel, the company said. Sibir, in turn, will acquire Moscow Oil & Gas, which operates the city's only refinery.

"Sibir will secure sufficient refining capacity for its fast growing production from the Salym and Magma fields," the company said in a statement. "The new Sibir will be a fully integrated oil and gas company."

Sibir's crude oil production, including its half of Siberia's Salym venture with Shell, now exceeds 50,000 barrels per day, the company said.

Sibir plans to raise $400 million "from two major international banks" to finance the transaction and refinance some debts, it said.