Russian authorities are discussing the idea of merging the corporations Rosneft, Gazprom Neft and Lukoil. Writes about thisThe Wall Street Journalwith reference to sources. According to one of the scenarios, the state-owned Rosneft will absorb Gazprom Neft and Lukoil. The single company could become the world's second-largest crude oil producer, second only to Saudi Aramco and producing nearly three times as much oil as America's Exxon Mobil.
The united structure will allow Russia to achieve higher oil prices in trade with India and China, as well as resist sanctions, The Wall Street Journal notes. Oil from all three companies, when combined, could be sold through Lukoil's trading division in Dubai, Litasco. Rosneft head Igor Sechin plays an important role in the negotiations, but it is unclear whether he will lead the new company. The Wall Street Journal names Gazprom Neft CEO Alexander Dyukov as another likely contender for the post. According to the newspaper, negotiations on the merger have been ongoing for several months, but they may not lead to a deal.
In addition, any details of the potential agreement could change. The newspaper's sources say the discussions indicate President Vladimir Putin's plans to rely on the energy sector to support military spending. The Russian presidential administration said it was not aware of such a deal. A Rosneft representative said that the newspaper's information was untrue. Lukoil said that neither the company nor its shareholders are negotiating a merger, since this is not in the interests of the company. Representatives of Gazprom Neft and Gazprom did not respond to journalists’ requests.
The united structure will allow Russia to achieve higher oil prices in trade with India and China, as well as resist sanctions, The Wall Street Journal notes. Oil from all three companies, when combined, could be sold through Lukoil's trading division in Dubai, Litasco. Rosneft head Igor Sechin plays an important role in the negotiations, but it is unclear whether he will lead the new company. The Wall Street Journal names Gazprom Neft CEO Alexander Dyukov as another likely contender for the post. According to the newspaper, negotiations on the merger have been ongoing for several months, but they may not lead to a deal.
In addition, any details of the potential agreement could change. The newspaper's sources say the discussions indicate President Vladimir Putin's plans to rely on the energy sector to support military spending. The Russian presidential administration said it was not aware of such a deal. A Rosneft representative said that the newspaper's information was untrue. Lukoil said that neither the company nor its shareholders are negotiating a merger, since this is not in the interests of the company. Representatives of Gazprom Neft and Gazprom did not respond to journalists’ requests.
