Lukoil denies plans to buy stake in OGX


Lukoil denies plans to buy stake in OGX


SAO PAULO -- Lukoil denied that it had plans to buy a stake in OGX Petroleo & Gas Participacoes, which has seen its share price plunge in recent weeks on financing concerns.

Vagit Alekperov, Lukoil's President, told reporters that he doesn't have plans to buy a stake in OGX, according to a company spokesman. "We have no such plans" he said, when asked by reporters while traveling in Italy.

He also said Lukoil is only considering a possible participation in 11th round of offshore reserves.

Brazilian newspaper Folha de S. Paulo reported that billionaire Eike Batista, who controls OGX, is in talks to sell a 40% stake in the oil producer to Lukoil. OGX is also in talks to sell a 40% stake in its Tubarao Martelo field to Petronas, the newspaper said. OGX denied the report.

OGX triggered a confidence crisis in the group's ability to fund its massive infrastructure investments after reporting production levels well below expectations. The original crisis began in June 2012, when OGX said it would produce much less than previously estimated. Earlier this month, the stock took another hit when OGX said it was facing operating problems at its only producing oil field, which led to a slump in production in March.

Dow Jones Newswires

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