ConocoPhillips last week won an auction with a bid of nearly $2 billion for the Russian government’s 7.6% stake in Russia’s Lukoil — the world’s No. 2 oil company by reserves. ConocoPhillips offered $1.988 billion, only slightly above the $1.928 billion starting price. Immediately following its winning bid, the company announced that it planned to increase its stake in Lukoil to 20%. It also announced that it had offered to buy a 17.5% stake in a production sharing agreement allowing Lukoil to develop Iraq’s, four billion barrel West Qurna field, and would pay another $374 million to secure a 30% stake in a new joint venture to tap into rich Siberian oil reserves in the Timan Pechora region. The price tag of the Lukoil bid made it the single largest cash deal in the history of Russian privatization.
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ConocoPhillips on Wednesday won an auction with a bid of nearly $2 billion for the Russian government’s 7.6% stake in Russia’s Lukoil — the world’s No. 2 oil company by reserves. ConocoPhillips offered $1.988 billion, only slightly above the $1.928 billion starting price. Immediately following its winning bid, the company announced that it planned to increase its stake in Lukoil to 20%. It also announced that it had offered to buy a 17.5% stake in a production sharing agreement allowing Lukoil to develop Iraq’s, four billion barrel West Qurna field, and would pay another $374 million to secure a 30% stake in a new joint venture to tap into rich Siberian oil reserves in the Timan Pechora region. The price tag of the Lukoil bid made it the single largest cash deal in the history of Russian privatization.
