Gazprom to Bid for Yuganskneftegaz.

(From The Moscow Times)

Gazprom will bid for Yuganskneftegaz as the Kremlin forges a massive state-controlled oil and gas major to include Yukos' main production unit.

The gas giant's new oil unit, Gazpromneft, will bid for Yuganskneftegaz, building up oil production to compete with major world energy companies such as ExxonMobil, BP and Royal Dutch/Shell Group, Gazpromneft general director Sergei Bogdanchikov said Tuesday.

"Gazpromneft will take part in the auction for Yugansk," a visibly nervous Bogdanchikov told a hushed conference at Gazprom's headquarters in southwestern Moscow.

"We will continue to work on acquiring assets because Gazprom must have two components of equal strength [in oil and gas] so that Russia has at least one really world-class company."

The announcement confirmed fevered speculation that Gazprom would take part in the auction for 76.79 percent of Yugansk. The Federal Property Fund said last month that the unit …