2010-09-28-2010-09-27

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Estimated Price
2.4BB
Description

To acquire 42.5 million share receipts held by ConocoPhillips.

Lukoil, Moscow, (Russia: LKOH; Nasdaq: LUKOY) plans to acquire 42.5 million of its own shares in the form of depository receipts held by ConocoPhillips, Houston, (NYSE: COP) in a in an option excercise valued at $2.38 billion.

Lukoil will acquire the receipts at US$56 each in order to raise shareholder returns. Pro forma, ConocoPhillips will hold 6.15% interest in Lukoil.

Lukoil is Russia's largest E&P company, with proved reserves as of January 2009 of 14.5 billion barrels of oil and 29.3 trillion cubic feet of gas.

This deal, along with the previous US$3.44 billion sale of ConocoPhillips shares to Lukoil in July and open market sales, has generated US$6.44 billion to ConocoPhillips in year-to-date pretax proceeds. The company will use the proceeds to buy back stock.

Lukoil vice president Leonid Fedun says, "This transaction helps us to steadily implement the program to enhance the company's investment attractiveness. It also allows us to support our share prices, since the transaction is funded by the Croup's internal resources, without increasing the company's total debt."