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. Last Updated: 07/27/2016

Yukos Pays $225M for 37% of Eastern Oil Co.

No. 2 oil producer Yukos won on auction Friday for a 36.8 percent state stake in medium-sized oil producer Eastern Oil Co., in which Yukos already had a majority stake.

A source close to the State Property Fund, which was in charge of overseeing the tender, said Yukos paid a premium of just $400,000 over the starting price of $225 million.

The purchase will allow Yukos to consolidate Eastern Oil assets and will end a months-long battle between Yukos, the State Property Fund and other oil majors over the stake.

The auction was postponed earlier this year after the fund said it needed more time to check that Yukos had not stripped any assets from Eastern Oil before the auction to scare off other bidders and guarantee its own victory.

Yukos denied asset-stripping at Eastern Oil and blamed the fund for supporting its rivals.

The nation's fourth largest oil firm, Tyumen Oil Co. had said it was ready to pay $400 million for the stake in Eastern Oil but said last week it would not participate in the auction.

In 1997, Yukos bought a more than 50 percent stake in Eastern Oil from the state, which controls the oil producing unit Tomskneft and Achinsk refinery in Siberia.

Yukos produced 58 million tons (1.16 million barrels per day) of crude oil in 2001, of which 11.7 million tons came from fields belonging to Eastern Oil.