Mittal buys half of LUKOIL's Kazakh venture

MOSCOW, Dec 12 (Reuters) Russia's top oil producer LUKOIL said on Tuesday that Mittal Investments had bought half of its Caspian Investment Resources subsidiary, paying 0 million and assuming around 0 million in debt.

''After the completion of the deal, which is expected in early 2007, Caspian Investments Resources Ltd. will become a joint venture of LUKOIL Overseas and Mittal Investments,'' LUKOIL said in a statement.

Mittal Investments is part of the Mittal Group controlled by Indian steel tycoon Lakshmi Mittal.

Caspian Investment Resources is LUKOIL's wholly-owned subsidiary for international upstream projects. It was the vehicle LUKOIL used to buy Canada's Nelson Resources last year.

LUKOIL paid MOSCOW, Dec 12 (Reuters) Russia's top oil producer LUKOIL said on Tuesday that Mittal Investments had bought half of its Caspian Investment Resources subsidiary, paying $980 million and assuming around $160 million in debt.

''After the completion of the deal, which is expected in early 2007, Caspian Investments Resources Ltd. will become a joint venture of LUKOIL Overseas and Mittal Investments,'' LUKOIL said in a statement.

Mittal Investments is part of the Mittal Group controlled by Indian steel tycoon Lakshmi Mittal.

Caspian Investment Resources is LUKOIL's wholly-owned subsidiary for international upstream projects. It was the vehicle LUKOIL used to buy Canada's Nelson Resources last year.

LUKOIL paid $2 billion for 100 percent of Nelson in the face of opposition from many small investors, who said the Russian major was paying far less than the real value.

The deal, which had the blessing of the Kazakh government, was the biggest foreign acquisition by a Russian firm.

LUKOIL has said it wants to expand further in Kazakhstan, which has massive hydrocarbon reserves and is set to become an important global oil player as it aims to triple output to 3 million barrels a day by 2015.

LUKOIL said it would invest $550 million to $700 million within five years to boost Nelson's output, which stood at around 30,000 barrels per day at the time of the acquisition.

Nelson has proven and probable reserves of around 270 million barrels, but its total reserves in place could be potentially as high as 2 billion barrels.

REUTERS PKS ND1702 billion for 100 percent of Nelson in the face of opposition from many small investors, who said the Russian major was paying far less than the real value.

The deal, which had the blessing of the Kazakh government, was the biggest foreign acquisition by a Russian firm.

LUKOIL has said it wants to expand further in Kazakhstan, which has massive hydrocarbon reserves and is set to become an important global oil player as it aims to triple output to 3 million barrels a day by 2015.

LUKOIL said it would invest 0 million to 0 million within five years to boost Nelson's output, which stood at around 30,000 barrels per day at the time of the acquisition.

Nelson has proven and probable reserves of around 270 million barrels, but its total reserves in place could be potentially as high as 2 billion barrels.

REUTERS PKS ND1702