"Egoryshkov is the candidate recommended by the overwhelming majority of creditors. We are very pleased by the recognition given by the court to the recommendation of the creditors," Howard Chase, director of external affairs for BP Amoco Russia, told Reuters.

Sidanko, in which then BP bought a 10 percent stake in 1997, was sued for bankruptcy in January by one of its creditors. The company was declared bankrupt in May and placed under the administration of a temporary external manager. Since then creditors have been trying to reach an amicable settlement on how to restructure the company's debts and inject new capital to take it forward.

Creditors announced last week that they had reached agreement on the terms of restructuring $217 million of debt and putting $64 million of new capitalinto the company. Because BP Amoco will put in a disproportionate share of the new capital, its shareholding is expected to rise to approximately 25 per cent.

Although creditors have agreed the terms of restructuring, they have not signed a formal document to that effect, and before they do so there are still issues to be settled surrounding the separate bankruptcies of Sidanko subsidiaries including production unit Chernogorneft.

"We would certainly hope to make substantial progress in the next few weeks" on signing a document finalising an amicable settlement, Chase said. As soon as this is signed, creditors can return to the court and ask it to lift the external management from the company.