The former Soviet Union has created Hermes-Soyuz, its first multinational oil company.
Formed May 23, it is the largest oil organization in what is now the Commonwealth of Independent States in terms of participants, Russia's BizEkon News reported.
Forty-five industrial and commercial entities are among Hermes-Soyuz founders. They are mostly state owned production associations such as Dagneft (Dagestan oil), Kirghizneft (Kirghyzstan oil) and Tomskneft (Tomsk oil) production associations and the Production Association of Siberian Main Oil Pipelines. Russia's Ministry of Industry also is a founder.
Founders established an authorized fund of 50 million rubles, divided into 50,000 shares with a 10,000 ruble/share nominal value.
A plan of development for the new company says in part a large modern oil company is needed to compete on equal terms with companies like Royal Dutch/Shell Group and British Petroleum Co. plc.
Hermes-Soyuz aims to provide C.I.S. oil producers and processors financial as well as material and technical assets. The purpose is to unite the potential,of the Hermes company and those of other oil businesses to conduct large scale trade and banking operations and invest in various projects, including the purchase of production facilities abroad.
Launching of Hermes-Soyuz will enable a considerable part of the former Soviet Union's drilling and processing operations to become reoriented toward a commercial basis in the shortest possible time, BizEkon News said.
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