No reasons for state to increase ownership of Russian oil sector – Dvorkovich

Arkady Dvorkovich file photo

MOSCOW. Nov 20 (Interfax) – Deputy Russian Prime Minister Arkady Dvorkovich said he saw no reasons for growth in state ownership of the Russian oil industry.

“We see no reasons for the state’s ownership in the oil sector to increase. There’s good competition between companies, companies are working well, with good profitability and substantial investments,” Dvorkovich said at a conference on dialog between oil producers and service companies.

The state currently controls Rosneftegaz, the core shareholder in Rosneft (RTS: ROSN). The state stake in Rosneft will be sold gradually, on the market. A block of shares will be sold to Britain’s BP as part of this process next year, and decisions in this area have already been approved,” Dvorkovich said.

The Russian oil market shouldn’t be subjected to significant changes, he said.

Dvorkovich said oil prices were close to equilibrium. “Our budget is based on an oil price of just under $100 a barrel for the mid-term. This means we are not expecting windfall revenue from the oil sector,” he said.