Sergei Bogdanchikov said at a meeting with President Vladimir Putin that a decision on consolidating the subsidiaries had been made at a meeting of the directors of Rosneft and all its subsidiaries on Monday.
Bogdanchikov confirmed that Rosneft, which puts its current value at more than $25 billion, would sell its stock in Russia and on the London Stock Exchange in what would be the nation's biggest IPO to date.
He said a consortium of four foreign and eight Russian banks was helping Rosneft prepare the initial public offering, including Sberbank and Gazprombank, a subsidiary bank of energy giant Gazprom.
He added that the participation of Russian banks would allow each Russian citizen to buy Rosneft shares.
He also said the IPO would boost the liberalization of Russia's economy.
Last week, Economics Minister German Gref said Rosneft was set to float up to 30% of its stock in Russia and on the London Stock Exchange.
He said the IPO was slated for the year's third quarter and that the money expected to be raised through the offering would go to repay a $7.5-billion loan taken to buy a 10.74% stake in Gazprom.
Bogdanchikov added that about 80% of natural gas produced by Rosneft was being supplied to consumers via Gazprom's system.
He also said the company was satisfied with the fast integration into Rosneft of Yugaskneftegaz, the former core production unit of embattled oil company Yukos.
Yuganskneftegaz was sold in December 2004 for less than $10 billion to a little-known company later acquired by Rosneft.
Rosneft has increased its stake in Yuganskneftegaz's charter capital from 50% to 76.79%. It now also holds 100% of common shares in Yuganskneftegaz, up from the 65.12% it held as of March 31, 2006.
