Lukoil Acquires Stake in 3 Small Russian Oil Companies

Lukoil has acquired controlling interest in three small oil firms to further consolidate assets in northern Russia. Once the acquisitions have finalized, Lukoil would increase its proven and probable reserves by 48 million tons and output would increase by 1.4 million tons per year.

The new transaction will also allow Lukoil to close multiple court cases as the company was involved in a number of lawsuits with the previous shareholders of the three firms, Tebukneft, Ukhtaneft and ZAO RKM Oil, all in the northern republic of Komi. Lukoil agreed with the shareholders of the Urals Group to buy a 50.8 percent stake in Tebukneft, a 59.8 percent stake in Ukhtaneft and a 58.3 percent stake in ZAO RKM Oil for an undisclosed sum. As a result of this transaction and other arrangements with other shareholders Lukoil together with its affiliates will control over 85 percent of shares of Tebukneft and Ukhtaneft and about 90 percent of shares of ZAO RKM.