Russia » Economics

"LukOil" Chooses Another Way

ConocoPhillips, America's third oil company is having talks with the Russian "LukOil" regarding a creation of a joint venture.
 
Mr. Fedun did not exclude the possibility of future cooperation between the companies. He mentioned however that "We are not planning to sell the company. We are building "LukOil" with one purpose in mind: to leave it for our children."
 
Russian President Vladimir Putin has been supporting "LukOil" in its actions so far. Sources claim that the company is planning to acquire some assets abroad as a result of the deal. 

 Undoubtedly, the creation of the joint venture is a huge step involving no lesser risks. According to the "Financial Times", it has been stated that both parties are still debating over the possibility of acquiring 10-15% of "LukOils'" shares for $1,7-2,5 billion by the American tycoon.

The newspaper also reminds that 11% of "LukOils'" shares already belong to the American Capital Group. If ConocoPhillips acquires another 10-15%, the influence of those western investors will definitely prevail. A possibility of police enforcement posing certain questions concerning this type of cooperation cannot therefore be completely excluded.

Such companies as ExxonMobil and ChevronTexaco are also interested in dealing with "LukOil". Those negotiations between the Russain tycoon and ConocoPhillips however appear to be most promising, states "The Financial Times."
 
It has been stated earlier that ExxonMobil and ChevronTexaco had already held several meetings with "UKOS". Sources claim that one of those companies attempted to purchase 40% of "UKOS'" shares.

According to a recent analytic report of the investment firm "Aton" in "Rosbalt-AKS", "if such negotiations do really take place, it will be a truly positive thing for "LukOil". The emergence of such strong strategic partner as Conoco will aid "LukOil" in its productivity increase. Stock market will benefit as well as price margins between "LukOil" and other leaders of "UkosSibneft" will most likely decrease".
 

In response to the unlawful December 1 arrest and detention of Chinese tech giant Huawei's chief financial officer Sabrina Meng Wanzhou by Canadian authorities in Vancouver at the behest of the Trump regime, facing possible unacceptable extradition to the US, Beijing warned its high-tech personnel last month against traveling to America unless it's essential.

China Warns Against Travel to US and Canada