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. Last Updated: 07/27/2016

LUKoil Planning Investment, Profit

LONDON -- Russia's LUKoil, which has the biggest oil reserves of any private company in the world, is planning an ambitious program of investment and cost reduction to allow it to compete with the likes of Shell and Exxon.

"It should be noted that while LUKoil already ranks first among world oil businesses in terms of reserve volumes, its financial results are seven to 10 times worse than the results of large Western companies," LUKoil vice president Vitaly Schmidt said Thursday.

LUKoil's strategy envisages more than doubling investment in the next five years to lift sales from $6.5 billion in 1995 to between $10 and $14 billion by the turn of the century and raising profits per share from 50 cents to nearly $1.50.

On Friday, LUKoil issued a tender for 140,000 convertible bonds, worth three percent of the company's capital. The largest chunk, 94,764, was bought by the Atlantic Richfield Co., which bought more than 240,000 bonds last September for $250 million.

Arco now has a 7.99 percent stake in LUKoil, just under an agreed ceiling of 8 percent, LUKoil said.