LUKoil, Gazprom Neft may set up JV within two months - CEO

Business Materials 3 October 2007 23:43

( RIA Novosti ) - LUKoil [RTS: LKOH], Russia's largest independent crude producer, and Gazprom Neft [RTS: SIBN] said they may establish a joint venture within the next two months, the LUKoil CEO said Wednesday.

LUKoil and Gazprom Neft, gas giant Gazprom's oil division, signed an agreement in May to form a JV to develop new deposits in East Siberia and the Timano-Pechora oil bearing province in north European Russia.

LUKoil is to have a 49% and Gazprom Neft a 51% stake in the JV, which will be managed on a parity basis.

Cooperation between LUKoil and Gazprom Neft is based on a strategic partnership agreement for 2005-14, which was signed in March 2005.

Vagit Alekperov also said his company may float shares in a bid to raise funds to acquire assets in Europe, adding that could happen next year.