((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto))
Russia is working on a proposed merger between Rosneft Oil ROSN.MM and Gazprom Neft SIBN.MM , creating the world's second-largest crude oil producer, the Wall Street Journal reported Friday.
Discussions between leaders and government officials have taken place over the past few months, and a deal may or may not be reached, the newspaper said, citing people familiar with the matter that it did not identify.
A combination of Rosneft and Gazprom Neft, a subsidiary of Gazprom GAZP.MM and Lukoil LKOH.MM , would be second to Saudi Arabia's Aramco 2222.SE and could pump out nearly three times the producer's output US oil company Exxon XOM.N, the report added.
There are some obstacles, including opposition from some Rosneft and Lukoil executives and the problem of raising funds to pay Lukoil shareholders, the report said.
Lukoil, Rosneft, Gazprom and the Kremlin did not immediately respond to Reuters requests for comment, while Gazprom Neft could not immediately be reached.
The Journal cited a Rosneft spokesperson who said the report was incorrect but declined to answer questions, while a Lukoil spokesperson told the newspaper that neither the company nor its shareholders were in merger negotiations “with no party, as this would not be in the best interest of the company”.
The newspaper cited a Kremlin spokesperson who said the administration was not aware of a deal.
Last month, the Kremlin said it could not confirm a report that Russia's energy minister had presented a proposal to nationalize the energy sector.
A channel called EJ on the messaging app Telegram, citing anonymous sources, reported that Energy Minister Sergei Tsivilev suggested to President Vladimir Putin, during a meeting in the Kremlin, to nationalize the energy sector. energy – a key liquidity provider for the state.
