abce certificate
Friday, 09 January, 2009, 00:40 GMT | more >>

Lukoil sets buyback ceiling



By Upstream staff 

Russia's top oil producer Lukoil is happy to carry out a $3 billion share buyback at prices up to $100 a share, the company's investor relations boss Gennady Krasovsky said today.

Lukoil has promised to launch the buy back next year as soon as US supermajor ConocoPhillips boosts its stake in the company to an agreed 20%.

Krasovsky said ConocoPhillips was currently "pretty close" to that level, with a holding of about 18.6% in Lukoil.

"We would be happy to buy shares at up to $100," Krasovsky said. Lukoil's dollar-denominated shares traded down 2.63% at $81.5 today.

Lukoil is pursuing an expansion plan that would double daily output to 4 million barrels per day of oil equivalent through investment in exploration and refining capacity. Krasovsky said the company aimed for around 2 million bpd of refining capacity - half of that in Russia and half in the rest of the world.

But he ruled out bidding for any of the assets of stricken oil giant Yukos, which is being dismembered by state-appointed receivers to recover debts from a giant back tax bill that Yukos says is politically motivated.

State-owned rival Rosneft has already bought Yuganskneftegaz which was once Yukos' main production asset and has said it would consider buying Yukos' refineries as it closes the production gap on Lukoil.

"We can not take risky assets with a controversial legal background," said Krasovsky.

Sources have told Reuters Rosneft is in talks with a number of western banks to arrange financing for the purchase of the Yukos assets, even though the company has promised "a lifetime of litigation" to any purchaser.


Thursday, 02 November, 2006, 14:12 GMT  | last updated: Thursday, 02 November, 2006, 14:17 GMT

e-mail this article to a colleague


to email:  from:
comments: