UPDATE 1-Russia's Lukoil, Gazprom to jointly explore Barents Sea shelf

Mon Jun 16, 2014 7:03am EDT

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MOSCOW, June 16 (Reuters) - Russian's Lukoil and Gazprom will set up a joint venture by the end of this year to explore a part of the Barents Sea shelf, Lukoil CEO said on Monday.

Lukoil, Russia's biggest non-state oil producer, will have a 34 percent share in the venture, Vagit Alekperov told reporters on the sidelines of an energy conference in Moscow.

He added the companies would finance exploration pro-rata their shares in the project but did not elaborate.

Russian law reserves the right to secure new offshore fields in Russia for state-controlled enterprises only and the partnership with Gazprom allows Lukoil to evade the restrictions. (Reporting by Olesya Astakhova; Writing by Maria Kiselyova; Editing by Elizabeth Piper)