Gazprom to Buy up Contractors

Russia’s state gas giant Gazprom is expected to close the purchase of two contractors from Russian billionaire Arkady Rotenberg and his son Igor within a month, the Moscow-based Vedomosti newspaper reported on September 25.

The firms in question are Stroygazmontazh and Gazprom Bureniya – both among Gazprom’s main contractors, sources told Vedomosti. Stroygazmontazh is primarily involved in pipe-laying while Gazprom Bureniya undertakes drilling services. They will be acquired by Gazprom’s recently-established Gazstroyprom subsidiary, with deals potentially being signed as early as next week at the St Petersburg International Gas Forum (SPIGF), the sources said.

Arkady Rotenberg owns 100% of Stroygazmontazh, while Igor controls 78.7% of Gazprom Bureniya.  The assets are worth at least rubles 117bn ($1.8bn), according to the sources.

Gazprom bought another of its main contractors, Stroygazconsulting, from its founder Ziyad Manasir last year. It is in talks to acquire another construction firm Stroytransneftegaz from businessman Gennady Timchenko, Vedomosti said, with a purchase likely by the end of the year.

Among other changes to its business model this year, Gazprom has reshuffled its management and increased its dividend payments to shareholders.