Published by Uma Rajagopal
Posted on November 9, 2024
2 min readLast updated: January 28, 2026
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(Reuters) – Russia is working on a plan to merge state-backed Rosneft Oil with Gazprom Neft and Lukoil, creating the world’s second-biggest crude oil producer, the Wall
(Reuters) – Russia is working on a plan to merge state-backed Rosneft Oil with Gazprom Neft and Lukoil, creating the world’s second-biggest crude oil producer, the Wall Street Journal reported on Friday.
Talks between executives and government officials took place over the past few months, and a deal may or may not happen, the newspaper said, citing people familiar with the matter whom it did not identify.
A combination of Rosneft, Gazprom subsidiary Gazprom Neft and Lukoil, would be second to Saudi Arabia’s Aramco and could pump almost three times U.S. oil producer Exxon’s output, the report added.
There are some obstacles, including opposition from some Rosneft and Lukoil executives and the problem of collecting funds to pay Lukoil shareholders, the report said.
Lukoil, Rosneft, Gazprom and the Kremlin did not immediately respond to Reuters requests for comment, while Gazprom Neft could not immediately be reached.
The Journal quoted a Rosneft spokesperson as saying the report was incorrect but declining to answer questions, while a Lukoil spokesman told the paper that neither the company nor its shareholders were in merger negotiations “with any parties, as this would not be in the interest of the company.
The newspaper quoted a Kremlin spokesperson as saying the administration had no knowledge of a deal.
The Kremlin said last month it could not confirm a report that Russia’s energy minister had put forward a proposal to nationalise the energy sector.
A channel called EJ on the Telegram messaging app, citing unnamed sources, reported that Energy Minister Sergei Tsivilev had suggested to President Vladimir Putin at a meeting in the Kremlin that the energy sector – a key provider of cash for the state – be nationalised.
(This story has been corrected to say merger of Rosneft Oil, Gazprom Neft and Lukoil, not Rosneft Oil and Gazprom Neft, in paragraph 1; and to clarify Gazprom Neft is a subsidiary of Gazprom, not of Gazprom and Lukoil, in paragraph 3)
(Reporting by Gnaneshwar Rajan in Bengaluru; Editing by William Mallard)
A merger is a business combination where two companies join to form a single entity, often to enhance competitiveness, expand market reach, or achieve operational efficiencies.
Rosneft is a state-owned oil company in Russia, recognized as one of the largest oil producers globally, involved in exploration, production, and refining of oil and gas.
Gazprom Neft is the oil subsidiary of Gazprom, Russia's state-owned gas company, engaged in oil exploration, production, and refining, and is one of the leading oil companies in Russia.
Lukoil is a major Russian oil company, involved in the extraction, production, and sale of oil and gas, and is one of the largest privately-owned oil companies in the world.
Crude oil production is crucial for the global economy as it serves as a primary energy source, influences fuel prices, and impacts various industries, including transportation and manufacturing.
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