LUKOIL to Purchase Certain Retail Assets in Europe from ConocoPhillips
MOSCOW, Dec. 18, 2006 – LUKOIL and ConocoPhillips [NYSE:COP] have reached definitive agreement for LUKOIL to purchase 376 ConocoPhillips fueling stations in six countries in Europe.
The agreement covers 156 stations in Belgium, 49 in Finland, 44 in the Czech Republic, 30 in Hungary, 83 in Poland, and 14 in the Slovak Republic. These stations are among the most efficient in their respective markets. At present, all facilities are branded Jet stations and will be re-branded as LUKOIL stations within two years.
The transaction is expected to close in the second quarter of 2007 following review by relevant authorities.
“This deal is in support of the Company’s downstream strategy, which among other things envisages LUKOIL’s plans to considerably expand its retail chain in Europe and sell products with added value,” said Vagit Alekperov, President of LUKOIL. “Today’s announcement represents a significant step in achieving our asset disposition program, and we are pleased the transaction supports the business direction of both companies,” said Jim Mulva, chairman and chief executive officer of ConocoPhillips.
ConocoPhillips plans to increase its interest in LUKOIL to 20% by the end of the year as part of a strategic alliance announced in 2004. The agreement reflects the strong and valued relationship between ConocoPhillips and LUKOIL.
LUKOIL is the second largest private oil company worldwide by proven hydrocarbon reserves. For more information, go to www.Lukoil.com.
ConocoPhillips is an integrated petroleum company with interests around the world. For more information, go to www.conocophillips.com.
CONTACTS:
Phil Blackburn (media) 281-293-1809
Gary Russell (investors) 212-207-1996
Dmitry Dolgov, LUKOIL (media) + 7 495 627 1654
Gennady Krassovsky, LUKOIL (investors) +7 495 981 7526
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This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that contain projections about our revenues, income, earnings and other financial items, our plans and objectives for the future, future economic performance, or other projections or estimates about our assumptions relating to these types of statements. These statements usually relate to future events and anticipated revenues, earnings, business strategies, competitive position or other aspects of our operations or operating results. In many cases you can identify forward-looking statements by terminology such as "anticipate," "estimate," "believe," "continue," "could," "intend," "may," "plan," "potential," "predict," "should," "will," "expect," "objective," "projection," "forecast," "goal," "guidance," "outlook," "effort," "target" and other similar words. However, the absence of these words does not mean that the statements are not forward-looking. The forward-looking statements are based on management's expectations, estimates and projections about ConocoPhillips and the petroleum industry in general on the date this statement was released. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. Economic, business, competitive and regulatory factors that may affect ConocoPhillips' business are generally as set forth in ConocoPhillips' filings with the Securities and Exchange Commission (SEC). ConocoPhillips is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements whether as a result of new information, future events or otherwise.
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