Oil report

UPDATE 2-Sibur may tap Russian wealth fund to build Amur gas complex

(Updates investment in Amur complex to up to $11 bln, adds detail)

MOSCOW, Aug 4 (Reuters) - Sibur may turn to Russia’s National Wealth Fund to help finance its planned Amur Gas Chemical Complex, a manager at the country’s largest petrochemicals producer said on Tuesday.

After increasing the scale of the gas chemical complex in Russia’s Far East, Sibur expects to invest $10-$11 billion, a rise from initial estimates of up to $8 billion.

China’s Sinopec is set to take a 40% stake in the complex, which could be completed by 2024.

“We are working with that option, but it’s up to the government and those regulators who have the access to that type of money,” Sibur management board member Alexander Petrov said of the possibility of drawing money from the Russian state fund.

The National Wealth Fund, which held $174 billion as of July 1, has previously provided Sibur with $1.75 billion in funding to build a petrochemical plant in western Siberia.

Separately, Sibur’s head Dmitry Konov said it was not the right time for a long-planned initial public offering, particularly given the coronavirus crisis.

Sibur, whose board members include Russian President Vladimir Putin’s former son-in-law Kirill Shamalov, has been considering Moscow for a possible listing.

Konov also said that Sibur would not proceed with plans for a petrochemical plant in Saudi Arabia jointly with Total and Saudi Aramco, deeming it unfeasible.

Sibur incurred a 4.5 billion rouble ($61 million) loss in the first half of the year due to the weak rouble and an 11.6% fall in revenues due lower prices for most of its products.

Excluding the non-cash foreign currency impact, adjusted net profit for the period was 37.9 billion roubles, compared to 49.3 billion roubles a year before. ($1 = 73.7600 roubles) (Reporting by Vladimir Soldatkin; Editing by Louise Heavens, Jan Harvey and Alexander Smith)