Lukoil will acquire Samara-Nafta

Lukoil's latest acquisition gives it a further foothold in Russian energy.

The Russian oil producer has purchased 100% of competitor, Samara-Nafta, which operates in the Samara and Ulyanovsk regions of the Russian Federation.

The deal, worth some $2bn will go ahead subject to approval from the country's Federal Antimonopoly Service.  If it is given the green light, the acquisition will enable Lukoil to further extend its oil refining, petrochemical and transportation capacities in the area.

Samar-Nafta's output comes to around 2.5 million tons of oil per year from ?1 and ?2 category oil reserves of around 85 million tons.  The total volume still allows plenty of potential for production growth, which further strengthens the hand of its new owner.

Lukoil is the second largest tax payer in Russian oil industry and the largest high-octane gasoline producer. Last year, the company's net income rose by 6.2% to reach a record $11.0bn for 2012.