ConocoPhillips Reducing Stake in LUKOIL

March 24, 2010
Reduction is part of a larger plan to sell $10 billion of assets over the next two years

ConocoPhillips said on March 24 it planned to sell halve its stake in Russian oil producer LUKOIL as part of its move to sell $10 billion of assets.

The U.S. company currently owns 20% of equity in Russia's second-biggest oil producer.

"Significant cash flow is expected to be generated from operating activities, the sale of 10% of LUKOIL, and asset sales over the next two years," ConocoPhillips said.

"We are focused on creating and delivering value to our shareholders," said Jim Mulva, chief executive.

ConocoPhillips had announced last year that it intended to sell $10 billion of assets over two years. "Approximately half of the assets will be sold in 2010 with the remainder in 2011, and a portion of the proceeds will be used to reduce debt to targeted levels," the statement said.

Copyright Agence France-Presse, 2010

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