Russia's Lukoil, ConocoPhillips reportedly in talks on stake sale

MOSCOW (AP) _ Russian oil giant Lukoil is in talks on the possible sale of a state to U.S.-based ConocoPhillips, Russian media reported Thursday. <br/><br/>``Negotiations are ongoing, but I don't know

Thursday, June 17th 2004, 1:36 pm

By: News On 6

MOSCOW (AP) _ Russian oil giant Lukoil is in talks on the possible sale of a state to U.S.-based ConocoPhillips, Russian media reported Thursday.

``Negotiations are ongoing, but I don't know any concrete details,'' news agencies agencies quoted Lukoil chief financial officer Sergei Kukura as saying in the company's first public statement about the talks, which were earlier confirmed by the government.

Kukura did not specify whether ConocoPhillips was interested in the Russian government's 7.6 percent stake in Lukoil, or whether another stake was up for sale.

In mid-2002, Lukoil's top executives owned slightly more than 20% of the company, one of Russia's top oil producers, according to a disclosure released ahead of its listing on the London Stock Exchange. Lukoil Chief Executive Vagit Alekperov is believed to be the company's largest single individual shareholder.

Earlier this month, ConocoPhillips CEO James Mulva met with German Gref, Russia's economic development and trade minister, to discuss the possibility of the U.S. company acquiring the state's stake in Lukoil.

The ministry has proposed that the entire government stake in Lukoil be sold at an auction in the third quarter of this year, but no final decision has been made.

Lukoil and Houston-based ConocoPhillips are already in talks on creating a joint venture to develop oil fields in northern Russia.