Russia's second largest oil producer LUKoil may use an option on Sunday to buy back 11.61% of its shares from U.S. major ConocoPhilips.
Conoco announced in summer that it would sell its entire 20 percent stake in LUKoil. LUKoil has already bought 7.6 percent of the stake for $3.442 billion and has an option to buy another 11.6 percent represented by American Depositary Receipts worth of $5.529 billion on September 26.
LUKoil CEO Vagit Alekperov said on September 17 that the company was holding negotiations with investors to sell shares under a buy back option program struck with ConocoPhillips.
"Many people want to take part. We are currently holding talks with foreign investors who wish to become large shareholders in LUKoil. We have time to think until Sept. 26," Alekperov told journalists.
LUKoil Vice President and co-owner Leonid Fedun said, however, that the company may not use the option at all, adding it was unreasonable to spend money on it.
If LUKoil does not acquire the shares through the option, ConocoPhillips would sell the stake on the market.
MOSCOW, September 26 (RIA Novosti)