(Rigzone) With Russian President Vladimir Putin elected for another six years to 2024, oil and gas analysts at BMI Research expect Gazprom and Rosneft to strengthen their control of the country’s hydrocarbon resources as the state fortifies its grasp over the sector.
The analysts also said it was likely that both companies would expand their influence into other sectors closely linked to oil and gas, such as petrochemicals and shipping.
“We expect Rosneft and Gazprom to strengthen their dominant control of Russian hydrocarbon resources, while increasingly expanding influence into oil-linked sectors such as petrochemicals and transportation,” the analysts said in a brief research note sent to Rigzone.
Despite Russia’s involvement in the OPEC-led production cut, BMI highlighted that Gazprom and Rosneft increased output in 2017 compared to 2016, while companies with less direct government involvement, such as Lukoil and Novatek, saw production drop.
Putin secured more than 76 percent of the vote in Russia’s presidential election on March 18, according to official results.