Gazprom Neft, the oil arm of Russian giant Gazprom, said that it has acquired 16-per cent stake in London-listed Sibir Energy.

Sibir produces oil in Siberia through its Salym Petroleum Development venture with Royal Dutch Shell.

The deal, expected to cost about 307 million pounds, values the company at $1.9 billion pounds, analysts said.

"We are pleased to have become a significant minority shareholder in a company that we regard as a world-class asset," Gazprom chief executive Alexander Dyukov said in a statement announcing the acquisition.

Gazprom Neft on Thursday bid for a minority stake in Sibir, prompting larger peer TNK-BP Ltd, the BP Plc joint venture and Russia's third- largest oil company, to withdraw a lower offer for the same company made hours before.

TNK-BP, was offering 430 pence for a share of Sibir.

The company is looking forward to accumulating more shares in Sibir, and has mandated Moscow-based investment bank Renaissance Capital to acquire more shares at 500 pence each on its behalf. The bid values Sibir at about 1.92 billion pounds ($2.8 billion), which produces about 160,000 barrels a day of crude.

Sibir's shares are currently suspended at 174.75 pence after regulatory probe into the activities of some shareholders, including its co-founder Chalva Tchigirinski, involving about $325 million missing fund. 

Tchigirinski and another Russian businessman own 47 per cent of Sibir, while the city of Moscow holds an 18 per cent stake.

Meanwhile, Sibir said that it had hired JPMorgan Cazenove as a financial adviser ''with a specific remit to protect the position of Sibir's minority shareholders.''

Gazprom Neft is in expansion spree, acquiring new assets at home and abroad. In 2009, the company acquired oils and lubricants producing facility under Chevron Italia SpA brand in Bari (Italy) from Chevron Global Energy, as well as Serbian oil refiner NIS.

For the full year 2008, it reported revenues of a record $33.1 billion, up 52 per cent from the $21.8 billion for 2007. Net income for the year reached $4.7 billion, an increase of 12 per cent from $4.1 billion last year.

However, its fourth quarter revenues declined 25 per cent to $5 billion from $6.6 billion reported in 2007.

The company expects oil production this year to fall to about 28 million tonnes from 30.7 million tonnes in 2008.