08/04/1998 14:42:21 BP says Russian SIDANKO to make debt announcement
LONDON, Aug 4 (Reuters) - Russian oil company SIDANKO <CHGZ.RTS> was
expected to make an announcement "in the near future" on resolving its
outstanding federal debt obligations, British Petroleum <BP.L> chief executive
John Browne said on Tuesday.
BP has a 10 percent stake in SIDANKO. Industry sources say the Russian
company is also believed to be about to announce a business strategy and
SIDANKO and Onako <ORNB.RTS> have until Wednesday to cover their debt to the
Russian budget or have access to export pipelines cut, a Russian Fuel Ministry
spokesman said on Tuesday.
Browne, presenting BP's first half year results, said BP's $20 million
losses in SIDANKO were temporary and would be recouped.
"Not everything is going sour in Russia," Browne said in response to a
question, adding that there were some "positive signs." Oil prices had suffered
but the company was working hard to lower costs.
BP announced a 29 percent drop in second quarter profits to 542 million
pounds, but the underlying performance improved by $150 million by the end of
the second quarter.
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