The government failed to decide the fate of Rosneft's chief on Tuesday despite his contract expiry, signaling that a Kremlin struggle over his successor is far from resolved.
Two industry sources close to the company said Sergei Bogdanchikov, the veteran chief executive, would remain in the lucrative post until a board meeting convenes at a later, unspecified date to decide his fate.
"The contract is extended for an unspecified period," one source close to the company said. Rosneft declined to comment.
Industry insiders have long predicted that Bogdanchikov's leadership of Russia's top oil producer had come to an end because he fell out of favor with Deputy Prime Minister Igor Sechin, who also chairs the state-run board of directors at Rosneft.
But Bogdanchikov, Rosneft's chief since 1998, has survived, thanks to the inability of rival political groupings to agree on successor who would suit them all.
Bogdanchikov, 52, has overseen a spectacular rise of Rosneft from a small oil producer into one of the world's largest oil firms with production of over 2.2 million barrels per day.
Bogdanchikov also brought Rosneft to the market, helping the firm raise $10.6 billion via an initial public offering of shares in July 2006.
Since then the market has been regularly hit by rumors of an imminent merger between Rosneft and private oil producer Surgut, the country's fourth largest, with analysts saying Surgut's veteran head Vladimir Bogdanov could become the chief of the merged giant.
Russian media and analysts have also mentioned the names of Deputy Energy Minister Sergei Kudryashov and Rosneft vice president Sergei Tregub as potential candidates to replace Bogdanchikov.
"There are three to four candidates, including Kudryashov," a second source said.