Lukoil buys own shares from ConocoPhillips for 3.5 billion USD
The leadership of the Russian oil company Lukoil has decided to buy back part of the company shares that are owned by the U.S. ConocoPhillips, said the newspaper Kommersant on information from Lukoil. Already decided that the share of 7.6% Lukoil will pay 3.44 billion dollars. That price is slightly below market to date yesterday. It is envisaged that the deal to be finalized by mid-August. In addition to the option provided by 26th September Lukoil to buy the rest of its shares owned by ConocoPhillips. 11.61% of these costs is 5.26 billion dollars. The shares of Lukoil is the biggest asset of the American company in Russia. In connection with the sale in March the President of ConocoPhillips James Malva said that “the biggest strategic opportunities in Russia are reserved for full Russian companies, and we knew it. ConocoPhillips Originally intended to sell half of its shares, but in a message to the leadership of the American company said yesterday that “considering the expected economic situation and the strategy adopted, by the end of 2011 will be sold all shares of Lukoil. Furthermore, the shares of Lukoil, ConocoPhillips in Russia and owns 30% of shares “Naryanmarneftegaz” (the rest of Lukoil), which plans this year to gain 8 million tons of oil, but these shares are not reported whether they will be sold.
Until recently the management of Lukoil did not intend to redeem their shares, given the situation of economic crisis. Yesterday, however, stated that those plans changed as they changed the estimates for the development of the economic situation. It is believed that Lukoil will pay for its own shares and borrowings, as the Russian oil company is not a problem to obtain the loan capital.
Tags: billion USD, ConocoPhillips, leadership, Lukoil, newspaper, Russian oil