Russia's Surgutneftegas Oil Production Association is moving to become a publicly owned stock company and a "profit centered" international oil company.
To that end it has named Daiwa Europe Ltd., London, its lead international financial adviser.
Daiwa said restructuring of Surgutneftegas, largest of the former Soviet Union's oil production units, is the first order of business. Other responsibilities for the London firm include advising on and arranging for investments in specific projects in the Surgut area.
Surgutneftegas operates in the Tyumen region of western Siberia.
This is the first appointment of an outside financial adviser by a major Russian oil enterprise, Daiwa said.
Surgutneftegas operates 56 oil fields projected to produce 43 million tons (860,000 b/d) of oil this year, or more than 10% of Russia's production.
Tyumen's economy depends heavily on the oil industry. Surgutneftegas directly employs nearly 100,000 persons, and another 300,000 depend indirectly on the industry for their living.
Copyright 1992 Oil & Gas Journal. All Rights Reserved.
