6 Oct 2010 12:42

Lukoil won

MOSCOW. Oct 6 (Interfax) - Lukoil will keep its stake in the Caspian Pipeline Consortium (CPC), Vice President Leonid Fedun told journalists.

Rosneft , which had been interested in acquiring a stake in CPC, has withdrawn from negotiations with Lukoil. "In my view, there is no reason to sell a stake," Fedun said.

"Our CPC stake will remain the way it is. There won't be any deal with Rosneft," Fedun said.

It was reported in June that Rosneft's president at the time, Sergei Bogdanchikov, said the company was in talks with Lukoil to acquire a stake in CPC.

"We are discussing the matter with Lukoil, but there has not been any specific decision yet," he said. Rosneft counted on receiving about 5.6% interest in CPC.

Bogdanchikov said at the time that talks on acquisition of a stake were complicated by the need to negotiate with the Kazakh and Russian governments and all the other consortium participants.

CPC operates the 1,580-kilometer Tengiz-Novorossiisk oil pipeline. CPC's sovereign shareholders are Russia with 31% and Kazakhstan with 20.75%. The rest of the consortium belongs to private companies: Chevron Caspian Pipeline Consortium Company (15%), LUKARCO B.V. (12.5%), Rosneft-Shell Caspian Ventures Limited (7.5%), Mobil Caspian Pipeline Company (7.5%), Eni International (N.A.) N.V. (2%), BG Overseas Holding Ltd (2%) and Oryx Caspian Pipeline LLC (1.75%).