LUKoil Gets Loans Worth Almost $800M

LUKoil, the country's largest nonstate oil company, secured two loans worth almost $800 million.

The company raised 400 million euros ($508 million) to help pay for a stake in a refining venture with Italy's ERG and $280 million to fund investments in refining and marketing, it said Friday in a statement.

ABN Amro Holding, Barclays Capital and ING Group are involved in both loans. Bank of Tokyo-Mitsubishi, BNP Paribas, Citigroup, Dresdner Kleinwort Group and WestLB are also behind the dollar credit.

The announcements come a day after savings bank Caja Madrid said LUKoil requested financing to buy a stake in Spanish oil producer Repsol. LUKoil declined to comment on reports of a deal.

Sacyr Vallehermoso and Criteria Caixacorp, which are in talks to sell holdings in Repsol, may lower the size of the stakes they are offering, El Pais reported.

Sacyr, which owns 20 percent of the oil company, may not sell all its holdings, while Criteria, which owns about 9 percent, may keep more than the 6 percent that it had intended to sell, the newspaper said, citing unidentified people involved in the talks.

Smaller shareholders such as Mutua Madrilena Automovilista and Caixa Catalunya will sell all of their holdings in Repsol, the newspaper added.