BP to up stake in Russia's Sidanco

LONDON, April 16 (Reuters) - British oil giant BP on Tuesday confirmed that it planned to pay $375 million for a further 15 percent stake in its 10 percent-held Russian oil affiliate Sidanco.

The deal was struck with investment operations Alfa Group and Access Renova, the main shareholders of Sidanco's parent firm Tyumen Oil (TNK). TNK was until last year the sworn enemy of world number two BP in a legal battle over Sidanco assets.

The deal gives BP 25 percent plus one share in Sidanco, a stake which under Russian law gives it blocking rights against the kind of asset removal by other investors that blighted its initial 10 percent Sindanco investment in 1997.

"This purchase underlines BP's confidence in Russia and its improving business environment,'' BP Chief Executive Lord Browne said. "Over the last few years Sidanco has refined its costs, strengthened its balance sheet and increased its focus on the upstream business. With this foundation Sidanco is well positioned to compete in the Russian market.''

Alfa Group Chairman Mikhail Fridman said, "We view this transaction as an important step in developing our co-operation with BP, and as a signal of renewed investor confidence in Russia.''