Support The Moscow Times!

LUKoil's CEO Opposes Buying Shares

LUKoil chief executive officer Vagit Alekperov opposes buying back more shares from ConocoPhillips in favor of wider ownership of the stock, he said in a comment published Monday.

Exercising an option to acquire 11.6 percent of LUKoil’s stock from ConocoPhillips doesn’t make sense, Alekperov said in remarks published in Vedomosti and confirmed by the Moscow-based company’s press service. The board and management haven’t made a decision yet, Alekperov said.

LUKoil, Russia’s second-largest oil producer, bought 7.6 percent of its stock from the Houston-based company on Aug. 16 for $3.44 billion. The purchase of the 11.6 percent stake may threaten the company’s credit rating should LUKoil finance the deal with short-term debt, Standard & Poor’s said in July.

The Houston-based company is selling its holding in LUKoil to raise money to repay debt and buy back its own shares. LUKoil has an option until Sept. 26 to buy more stock at $56 a share, ConocoPhillips CEO Jim Mulva said last month. That values the whole 11.6 percent stake at $5.53 billion.

LUKoil wants to raise the number of investors that hold less than 5 percent of the company, Vedomosti reported, citing Alekperov. Alekperov and his deputy, Leonid Fedun, together control about 30 percent of the oil producer, said Andrei Gaidamaka, LUKoil’s director of strategic development.

Before deciding what to do with the shares LUKoil has already purchased from ConocoPhillips, management will first agree on whether to use the option, the Moscow-based company’s press service said.

Sign up for our free weekly newsletter

Our weekly newsletter contains a hand-picked selection of news, features, analysiss and more from The Moscow Times. You will receive it in your mailbox every Friday. Never miss the latest news from Russia. Preview
Subscribers agree to the Privacy Policy

A Message from The Moscow Times:

Dear readers,

We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."

These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.

We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.

By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more