MOSCOW, May 25 (RIA Novosti) - The heads of Russia's largest oil companies, LUKoil [RTS: LKOH] and Gazprom Neft [RTS: SIBN], signed Friday a memorandum of understanding to set up a joint venture, LUKoil said in a statement.
Vagit Alekperov of LUKoil and Alexander Dyukov of Gazprom Neft agreed to carry out joint oil and gas projects to obtain mineral licenses and conduct geological prospecting on licensed areas in Russia. LUKoil will control 49% in the joint venture and Gazprom Neft the remaining 51%, and they will share control of the company.
LUKoil CEO Alekperov said: "The memorandum of understanding... is an effective mechanism for mutually advantageous cooperation between large Russian oil companies, which have a strong production and financial potential to implement large projects in oil and gas exploration."
LUKoil and Gazprom Neft signed a general agreement on strategic partnership for 2005-2014 in March 2005.
