MOSCOW, April 18 (RIA Novosti) - The consolidation of state-owned oil company Rosneft and its subsidiaries, which is expected to boost capitalization by $10 billion, will be completed by November, the company said Tuesday.
"The goal of the Rosneft reorganization is the logical conclusion of the process of forming a single vertically integrated company and turning it into a world-class oil and gas company," a Rosneft press release said, adding that the company would reduce expenditure and increase its management effectiveness as a result.
Rosneft President Sergei Bogdanchikov told President Vladimir Putin earlier Tuesday that the company would take over all its subsidiaries' assets and licenses.
Rosneft's plan envisages consolidation of 12 assets, including Rosneft-Krasnodarneftegaz, Rosneft-Purneftegaz, Rosneft-Sakhalinmorneftegaz, Rosneft-Stavropolneftegaz, Yuganskneftegaz, Severnaya neft, Selkupneftegaz, Rosneft-Komsomolsk NPZ (Komsomolsk Refinery), Rosneft-Tuapse NPZ (Tuapse Refinery), Rosneft-Arkhangelsknefteprodukt, Rosneft-Nakhodkanefteprodukt, and Rosneft-Tuapsenefteprodukt.
Rosneft and the companies involved will each hold general shareholders' meetings on the consolidation on May 30, the company said.
Rosneft plans to propose to its minority shareholders to convert their shares into the consolidated company's shares, or to sell them in accordance with Russian regulations.
