ARCO, LUKoil Sign Summary Shareholders Agreement, Detailed Financing Terms for LUKARCO Joint Venture
The agreements were signed in Moscow by Vagit Alekperov, President of LUKoil, and Mike R. Bowlin, ARCO Chairman and Chief Executive Officer. LUKoil and ARCO will have a 54% and 46% interest respectively in the LUKARCO joint venture.
The joint venture was formed to invest in upstream oil and gas opportunities in Russia and other countries. Investment in this joint venture could total $5 billion over an 18-year period. ARCO will provide most of the financing.
LUKARCO will begin operations with the signing of definitive agreements and upon receipt of government approvals, board of directors approval, and the fulfillment of other conditions.
"The LUKARCO joint venture passed a significant milestone today with the signing of these documents," said Bowlin. "We are very pleased that this joint venture will establish the basis for a long-term association with LUKoil. LUKARCO will allow both companies to invest aggressively in areas of significant oil and gas potential. Work is already underway to identify specific investments to start the operating phase of our work," Bowlin said.
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