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Russian failure hits BP Amoco

Saturday 30 January 1999 00:02 GMT
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Russian failure hits BP Amoco

SHARES IN BP Amoco fell yesterday when Sidanko, a Russian oil producer in which BP has a 10 per cent share, said it faced bankruptcy proceedings. Sidanko, Russia's sixth-largest oil producer, is being sued by a creditor company, Beta-Eko, for unpaid debts. The company, which was hard hit by the slump in oil prices, has struggled to pay off its debts because of oil export restrictions imposed by the Russian government.

A spokesman for BP Amoco, which bought its stake to access the Kovykta gasfield in eastern Siberia, said the company was still viable in the long term. BP Amoco shares fell 14p on a rising market to close at 822p.

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