Lukoil buys out ConocoPhillips share of Russian venture

OAO Lukoil has closed its acquisition of ConocoPhillips’s indirect 30% interest and certain related assets in NaryanmarNeftegas (NMNG), a joint venture of the two companies.

NMNG was established in 2005 with Lukoil owning 70% and ConocoPhillips owing the rest.

Financial terms of the transaction were not disclosed. ConocoPhillips said it expects a $400 million aftertax financial gain from the sale.

“The sale of this noncore quality asset is an important component of our divestiture program for 2012,” said Don Wallette, executive vice-president, commercial, business development, and corporate planning.

Lukoil said it is strengthening its position in Timan Pechora oil and gas province, which the company calls its key upstream region.