Russia’s Lukoil spends $1.5 billion to raise stake in Azeri gas project

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Illustration shows Lukoil logo and natural gas pipeline

MOSCOW – Russia’s second-largest oil producer Lukoil has closed a deal to buy a 9.99% stake in Azerbaijan’s Shah Deniz natural gas project from Malaysian oil and gas company Petronas for $1.45 billion, it said on Friday.

Lukoil had been set to buy a 15.5% stake from Petronas for $2.25 billion but reduced the transaction after other project shareholders BP and Azeri SOCAR, claimed their pre-emptive rights.

After Friday’s completion of the deal Lukoil owns 19.99% in Shah Deniz, BP as operator controls 29.99%, with TPAO owning 19%, SOCAR 14.35%, NICO 10% and SGC the remaining 6.67%.

(Reporting by Katya Golubkova; Editing by David Goodman)