LUKoil Takes 100 Per Cent Stake in NaryanMarNefteGaz

Russian company LUKoil has taken a 100 per cent stake in the NaryanMarNefteGaz (NMNG) joint venture following the acquisition of ConocoPhillips' indirect 30 per cent stake in the asset.

Though no financial details of the trade were released by either company, in a statement yesterday ConocoPhillips said that it expected to make an after-tax financial gain of around $400 million after the sale. 

In the same statement, said ConocoPhillips' executive vice president, Commercial, Business Development, and Corporate Planning, Don Wallette said that the company's sale of the asset was a part of its drive to divest assets in 2012.

"The sale of this non-core quality asset is an important component of our divestiture program for 2012," he said. "We are pleased that LUKoil, the co-owner of NMNG, recognizes the value of this asset."

LUKoil, which originally had a 70 per cent stake in the joint venture, will raise its stake to 100 per cent following the closing of the transaction. The deal gives the company total control of seven oil and gas fields held by NaryanMarNefteGaz, five of which are producing. The fields are all located in Russia's Timan-Pechora province.