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. Last Updated: 07/27/2016

Firms to Bid for Onako Stake

MOSCOW — The nation’s secondlargest oil producer, Yukos, the sixth largest, Sibneft, and pipeline builder Stroitransgas said Wednesday they would jointly bid for 85 percent of oil firm Onako.

Onako is one of the last oil firms in state hands, and its privatization has sparked interest from a number of major firms, including the largest oil producer, LUKoil.

"The three companies will jointly organize financing for the bid and will be represented in the tender by the Profit House investment company," they said in a statement.

A Sibneft spokesman said the companies did not wish to comment on their plans for Onako until after the tender.

The State Property Fund, the official seller of the state’s stake in Onako, is accepting bids until Sept. 14 at a starting price of $425.25 million.

The results of the tender are expected to be announced on Sept. 19.

Onako, the country’s 14th-largest oil producer, produced around 8 million metric tons (around 160,000 barrels per day) of crude last year.

LUKoil had preliminarily announced its intention to participate in the tender, but a spokesman declined to comment Tuesday.