ROSNEFT MOVES TOWARD PRIVATIZATION; FINNISH-RUSSIAN VENTURE SET

April 17, 1995
Russia's government has passed legislation that will lead to privatization of state oil company Rosneft. Meanwhile Finland's Neste Oy has formed an exploration and production joint venture in Russia's Timan-Pechora region. A decree enabling the change of Rosneft into a joint stock company was disclosed early this month, London's Financial Times reported. "This," said one source quoted, "means the end of the first phase of the Russian oil industry restructuring. All the holding

Russia's government has passed legislation that will lead to privatization of state oil company Rosneft.

Meanwhile Finland's Neste Oy has formed an exploration and production joint venture in Russia's Timan-Pechora region.

A decree enabling the change of Rosneft into a joint stock company was disclosed early this month, London's Financial Times reported.

"This," said one source quoted, "means the end of the first phase of the Russian oil industry restructuring. All the holding companies have been created. All the entities have been privatized".

Russia's government reportedly plans to retain a 51% interest in Rosneft for 3 years, while the remaining shares are to be sold on the stock market.

Financial Times reckons Rosneft's concessions in multibillion dollar Sakhalin Island and Timan-Pechora developments could make it an attractive investment.

NESTE JOINT VENTURE

Neste registered with Russian authorities the upstream joint venture company Pechormorneft. The venture will be based in Naryan-Mar, capital of the Nenets autonomous okrug, which lies east of the mouth of the Pechora River.

Neste said the venture is the result of years of cooperation between companies in Finland and Murmansk on scientific research in the Russian Arctic.

Russian partners taking a total 51% in the venture are the Nenets autonomous okrug, Trust Sevmorneftegeofizika, Niimorgeofizika, MAGE, and PO Sojuzmorgeo.

Finland's 49% interest will be split between Neste and Norwegian owned Finnish fabricator Kvaerner Masa-Yards Oy, Helsinki.

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