RusEnergy

06/05/2005 (14:30) - The Moscow Times - Sibneft would be unable to take part in auctions for licenses to mine mineral resources, if the company's accounts were frozen and it had tax arrears. This aspect has become particularly important in connection with rumors about back-tax claims against Sibneft, UFG analysts have noted, commenting on the oil company's victory at two tenders for the right to explore and produce hydrocarbons. In the opinion of analysts, the value of the reserves that have been acquired is so far difficult to estimate. Specifically, it is difficult to compare the value of reserves, because of unclear classification of reserves under Russian standards, while their precise conversion into reserves estimated in accordance with SEC or SPE methodologies is impossible, UFG experts remarked. Guta Bank's analysts assume that Sibneft has acquired the field in Eastern Siberia in accordance with its long-term plans. The advantage of this field is its location not far from a backbone oil pipeline, the experts pointed out. Other experts noted that Sibneft was continuing to increase its reserves, and the price paid by the company for the new licenses was not high. The fact that Sibneft has been granted a license for a field in Eastern Siberia, which is Russia's most promising region in terms of oil and gas reserves, indicates that the company is planning to further develop its business in that region