LUKOIL, the largest Russian private oil company, will not sell its
share in the Caspian pipeline consortium (CPC) to Rosneft, RIA Novosti
reports, citing the Vice-President of the company Leonid Fedun.
He said that Rosneft closed its negotiations.
Earlier Rosneft had reported about negotiating a purchase of 5.6%
shares in the CPC.
Rosneft controls 3.83% share of the CPC through Shell - Rosneft-Shell
Caspian Ventures Limited.
In June, the Kommersant newspaper reported that Rosneft and LUKOIL
signed an agreement purchasing a 46% share in Lukarco. Lukarco owns
12.5% of the CPC. LUKOIL controls 100% of Lukarco.
CPC system is the longest gas transporting line from the Caspian to
the world market. It is 1 500 km long and connects the fields of West
Kazakhstan with the Russian coast of the Black Sea. Kropotkin oil
pumping station in Krasnodar Territory pumps oil extracted in Russia.
In December 2009 the shareholders of CPC approved the expansion plan
of CPC's capabilities to 67 million tons. The expansion will be
complete in 2014.
