ConocoPhillips
The third largest US oil firm ConocoPhillips said today it was seeking 20% of Russia's LUKOIL in a far-reaching alliance which opens the way for the oil majors to tap vast reserves in northern Russia and Iraq.
Announcement of the agreement, which both parties said enjoyed the strong support of the US and Russian governments, followed the purchase at auction by Conoco of Russia's remaining 7.6% stake in LUKOIL for $1.988 billion.
Conoco has agreed that it will not raise its shareholding in LUKOIL, one of Russia's two top oil producers, above 20% for the foreseeable future.
Conoco said it would raise its stake to 10% by the end of the year and gradually boost its shareholding to the 20% agreed ceiling over two to three years.
The two firms said they would form a joint venture - 70% owned by LUKOIL and 30% by Conoco - to develop Russia's northern Timan-Pechora oil region.
