Industry profile. Siberian-based Oil Companies

Industry profile. Siberian-based Oil Companies.

Siberia is Russia's main oil field: in 1994 almost two-thirds of all oil extracted came from Siberia. Judged by their economic behavior, corporate relations, relationship with the state, it's difficult to call Siberian oil companies capitalist enterprises, yet they can no longer simply be considered "socialist" organizations. The ambiguity assiciated with the oil companies is largely a result of an incomplete privatization process: there are still no actual owners easily identifiable, whom ordinary personnel of enterprises and petty share-holders could hardly be attributed to. The functions and real powers of the state, legally secured in statutes and in nominal capital of the companies, are not clear. The circumstances are such, that the state is represented in all the companies, with majority shareholdings, yet it is unable (or unwilling?) to influence actually the activities of the companies. In any case, new oil companies operate under the circumstances, which are distinctive with

Such the circumstances, naturally, restrict appreciably the economic "freedom" of oil companies.

Towards Rationalization

Table 1: oil extraction by largest Russian companies, 1994, million tons

     RosNeft        - 121.3
     LUKoil         - 45
     SurgutNefteGaz - 34.3
     SIDANCO        - 32.8
     YUCOS          - 28.4
     MinTopEnergo (Department of Fuel and Energy)
     total         - 302.4 (338.6 in 1993)
RosNeft includes Nijnevartovsk- and NoyabrskNefteGaz. SIDANCO includes KondPertoleum, TchernogorNeft, VarryeganNefteGaz.

Table 2: oil extraction in Tyumen province, million tons

                             1994             1993

     SurgutNefteGaz        - 34.3              38.1
     YuganskNefteGaz       - 28.5              32.1
     KogalymNefteGaz       - 25.4              25.5
     NijnevartovskNefteGaz - 23.1              25.6
     NoyabrskNefteGaz      - 22.6              25.6
     Tyumen total          - 212.7             233.7

Inner Consolidation

Valery Kryukov