By Amie Ferris-Rotman
MOSCOW (Reuters) - Russia's oil industry is set for further consolidation with state and gas giant Gazprom (GAZP.MM: Quote, Profile, Research, Stock Buzz) seen taking centre stage from rival Rosneft (ROSN.MM: Quote, Profile, Research, Stock Buzz), officials and executives told the Reuters Russia Investment Summit.
The Kremlin has regained control of over a third of the Russian oil industry -- the world's second largest -- since President Putin came to power in 2000.
While Russian steps for denationalization have varied little from other resource-rich nations, it differs in that two state players -- Gazprom and Rosneft -- often try to outdo each other.
Shares of private Surgutneftegas (SNGS.MM: Quote, Profile, Research, Stock Buzz), Russia's fourth biggest oil company, have risen since early August on rumors the Kremlin is considering creating a new state oil major by wrapping assets of Rosneft with Surgut and other firms.
But the idea was dismissed by industry experts this week.
"Something has to happen around Surgut ... There is probably a fit with Gazprom," Boris Jordan, president and chief executive of equity firm and advisory firm Sputnik Group, said, who sees a merger of Surgut and Rosneft creating "a too bigger company".
His comments were echoed by Mark Gyetvay, chief financial officer of Russia's number two gas firm Novatek (GAZP.MM: Quote, Profile, Research, Stock Buzz), in which Gazprom has a 19.4 percent stake.
"Surgut is the most likely candidate for a takeover ... It's Kremlin-friendly ... Gazprom wants to create as much (of) a balance between oil and gas as it can," said Gyetvay. Continued...
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