16:19 GMT +3 hours28 November 2014
Live
Business

LUKoil Abandons Rosneft Shelf Talks, HK Listing

Business
000
LUKoil, Russia's largest privately-owned oil company, has broken off talks with state-owned Rosneft over cooperation on offshore shelf projects, LUKoil's head Vagit Alikperov said on Friday.

LUKoil, Russia's largest privately-owned oil company, has broken off talks with state-owned Rosneft over cooperation on offshore shelf projects, LUKoil's head Vagit Alikperov said on Friday.

"The talks have stopped," he said, "while the two sides cannot find mutually beneficial projects."

LUKoil has also suspended plans to list on the Hong Kong stock exchange, Alekperov said.

“Today the company’s financial situation is stable. We have put off examining this question [of a Hong Kong listing],” he said, adding there would be no listing in Hong Kong in 2013.

LUKoil previously said it would consider an SPO listing worth $2-3 billion in Hong Kong.

Alikperov says LUKoil expects production this year to reach 91 million tons, the same as the previous year.

The company will consider in October whether to make interim dividend payments, he said.

"We think the next board of directors' meeting will be in October. It will study that question," he said.

The company intends to maintain its policy of paying dividends of around 25 percent of net profit, he added.

In June, shareholders at the annual general meeting approved a dividend payment of 75 rubles per share for 2011, up 27.1 percent on the previous year's 59 rubles per share.