* LUKOIL CEO says no plans for buybacks
* Says Conoco disappointed with amount of joint projects
MOSCOW, June 24 (Reuters) - Russia's LUKOIL LKOH.MM does not expect its strategic partner ConocoPhillips COP.N to fully sell out of LUKOIL despite the U.S. oil major's latest move to halve its stake following disappointment about some projects.
Earlier this year, Conoco said it would halve its 20 percent stake in Russia’s No.2 producer within three years as part of its plan to sell $10 billion worth of assets. [ID:nN24186336]
Asked whether Conoco was likely to sell the remaining 10 percent, LUKOIL Chief Executive Vagit Alekperov told business daily Kommersant: “I don’t think it could happen in the near future. I don’t think they will sell such a big stake in one go.”
Alekperov said one of the reasons behind Conoco’s move was a failure by the two firms to launch as many projects as they initially wanted, which could be partly explained by tough Russian rules on foreign firms’ presence in key industries.
“Initially, we were aiming for a large package of joint projects, but it turned out to be rather narrow, which probably also disappointed them (Conoco),” Alekperov said.
He said LUKOIL had no plans to buy back the 10 percent of the company that Conoco has said it would sell on the open market.
“We think the company has other goals at the moment,” he said. Alekperov, who owns 20 percent of LUKOIL, said he had no plans to purchase the stock either but that it could change in the future if LUKOIL delayed projects and he ended up with spare cash.
Alekperov also said he did not expect Conoco to offer the shares to other oil companies.
“We have the first refusal right and we are watching all sales that (Conoco) is conducting,” he said.
Writing by Nastassia Astrasheuskaya; Editing Erica Billingham
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