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. Last Updated: 07/27/2016

Conoco Confirms LUKoil Share Sale

NEW YORK — ConocoPhillips, the third-largest U.S. oil company, said Wednesday that it planned to sell half of its 20 percent stake in LUKoil in two years and use the proceeds to fund a $5 billion share-buyback program.

The 10 percent is worth about $5 billion at recent prices, ConocoPhillips CEO Jim Mulva said at the company's annual analyst meeting.

ConocoPhillips said in October that it planned to sell $10 billion in assets over two years to cut debt. The oil major spent about $2 billion in 2004 buying the Russian government's 7.6 percent stake in LUKoil and raised its interest to 20 percent in 2006. It said Wednesday that its net cash investment in LUKoil equaled about $6.4 billion.

LUKoil will consider politics and investment needs before deciding whether to buy its own shares from ConocoPhillips, deputy CEO Leonid Fedun said. Russia may not like for LUKoil to purchase the stock, he said.