Rus News Journal

LUKOIL creates the South European knot

negotiations with Slovene Petrol will renew

Negotiations about joint venture creation between LUKOIL and Slovene Petrol which have been begun in 2006 and are frozen in December, 2007, will renew after carrying out of meeting of shareholders Petrol on May, 15th. Was considered that the parties could not agree about the price of actives brought in the joint venture. However for the first quarter of the action of the Slovene company have fallen almost to 50 %, and on this background its representatives became more compliant, experts consider.

LUKOIL and Petrol d. d. Ljubljana will renew negotiations about creation of the joint venture for realisation of oil products in territory of the Balkan countries after will pass the meeting of shareholders Petrol appointed for May, 15th on which the new chief executive of the company will be selected, Slovene newspaper Finance referring to the representative of LUKOIL in Slovenia has informed yesterday Boris Bicheka. The president of supervisory board Petrol Victor Baraga who should hold a management post, also has confirmed to the edition that it will renew negotiations with LUKOIL.

in a press - service of head office of LUKOIL yesterday have not confirmed, but also have not denied this information. The frame agreement on creation of the joint venture of the party have concluded still two years ago. It was planned that Petrol will belong 51 % of participation in it, to LUKOIL - 49 %. Management of the joint venture of the company intended to carry out on a parity basis. It was supposed that Petrol will bring in an authorised capital stock of the joint venture of the action of four companies owning the gas station in Slovenia, Croatia, Bosnia and Serbia. LUKOIL will bring actions of branches - LUKOIL - Beopetrol (Serbia) and LUKOIL - Macedonia .

transaction End was expected in the end of 2006, but between storo ­ the disagreements, presumably concerning costs of actives have arisen us. The transaction is not finished till now because the parties could not agree - has informed a press - the secretary of LUKOIL Dmitry Dolgov. Petrol 305 gas stations in Slovenia, 33 - in Bosnia and Herzegovina, 21 - in Croatia and two in Serbia own. At the moment capitalisation Petrol makes nearby 1 mlrd dollars From the beginning of year when as informs Bloomberg, negotiations with LUKOIL have been stopped, shares of company have fallen almost to 50 %.

Yesterday against news about renewal of interest of LUKOIL to the joint venture with Petrol actions of the Slovene company have grown on 9,4 %. Such growth of papers of the enterprise was observed last time in March, 1999. Milan Smiljanich, the analyst of Ljubljana company Perspektiva who quotes Bloomberg, directly connects growth of actions and news on LUKOIL.

LUKOIL repeatedly underlined the interest in the Balkan region where, in its opinion, in the big degree effects of a synergy with existing actives in the Eastern Europe are achievable. He already owns actives in Romania, Serbia and Macedonia, and also in Bulgaria where to it belongs about 74 % of the wholesale market on realisation of oil products. The Eastern Europe is the most priority direction as here the highest indicators of profitableness on retail, and LUKOIL actively increases there the presence, considers Artem of Deaths, an analyst JuniKredit Aton .

the Partnership between the companies quite probably, is considered by Natalia Milchakova from FK Opening if LUKOIL considers it for itself interesting. Petrol needs the new strategic partner. As she said, besides LUKOIL in the Slovene company can become interested and other players of the market, in particular one of the transnational companies or Russian Gazprom oil which already has actives in region, argues g - zha Milchakova.

Putin has resolved diamond dispute
Yesterday it became known that fifteen-year suit between LUKOIL and American De Beers could be resolved safely this week not without participation of the president of Russia Vladimir Putin. As has informed yesterday De Beers, the agreement has been reached after a meeting with it of the president of LUKOIL Vahid Alakbarov and chairman of board of directors De Beers of Niki Oppengejmera. We will remind, the licence for working out of the Verhotinsky diamond deposit in the Arkhangelsk region was the conflict reason. After a party meeting have signed the agreement in which frameworks De Beers in the name of Archangel Diamond Corporation will buy 49,99 - a percentage share in Open Society Arkhangelsk geologodobychnoe the enterprise belonging to LUKOIL which owns the licence for the Verhotinsky area. On termination of the transaction judicial lawsuits between the companies will be stopped. Transaction cost has made 225 million dollars