LUKOIL, Gazprom Neft set up exploration venture

MOSCOW, Dec 28 (Reuters) - Russia's No.2 oil firm LUKOIL (LKOH.MM) and the oil arm of gas export monopoly Gazprom (GAZP.MM), Gazprom Neft (SIBN.MM), on Friday set up a joint venture to explore for oil and gas in Russia and abroad.

The firms said in a joint statement the venture will be 51 percent controlled by Gazprom Neft and 49 percent by LUKOIL. It will also produce, transport and sell hydrocarbons.

No other details were given although the firms have discussed the venture for more than a year and have repeatedly postponed its finalisation.

Analysts have said the deal will help state-controlled Gazprom Neft, Russia's No.5 oil firm, get access to much richer reserves of privately owned LUKOIL.

The private major is also set to gain from the deal mainly by cementing political ties with the Kremlin through Gazprom Neft's powerful parent company Gazprom. (Reporting by Dmitry Zhdannikov; editing by James Jukwey) (dmitri.zhdannikov@reuters.com, + 7 495 775 12 42, Reuters Messaging: dmitri.zhdannikov.reuters.com@reuters.net))