Russia’s largest privately owned oil firm LUKoil has acquired ConocoPhillips’ indirect 30 percent interest in NaryanMarNefteGaz (NMNG) operating in the Timan Pechora oil and gas province in northern Russia, the firm said on Wednesday.
“The acquisition brings LUKoil’s total ownership interest in NMNG to 100 percent. Financial terms of the transaction were not disclosed,” LUKoil said in a statement.
In view of the sale of ConocoPhillips’ 30 percent stake in NMNG as part of its divesture program for 2012, LUKOIL is aiming to strengthen and consolidate its positions in its key upstream Timan Pechora region, the statement said.
ConocoPhillips said it expected to recognize an after-tax financial gain of about $400 million for the sale.
“The sale of this non-core quality asset is an important component of our divestiture program for 2012,” said Don Wallette, executive vice president, Commercial, Business Development, and Corporate Planning.
“We are pleased that LUKoil, the co-owner of NMNG, recognizes the value of this asset.”
The sale of NMNG is part of ConocoPhillips’ plan to increase value for shareholders through disciplined capital investment, improved returns on capital and growth in shareholder distributions.