Russia’s Lukoil, the country’s biggest non-state oil giant, is looking to buy a 30 percent stake in Spain’s biggest oil producer, Repsol.
If the deal goes ahead, it could mark the beginning of major stake-building by Lukoil.
The company already owns refineries in Bulgaria and Romania and agreed in June to shell out 1.35 billion euros to buy into a refining project in Italy with ERG.
Shares in Repsol rose some 11 percent in Madrid trading after Criteria Caixacorp said it and Sacyr Vallehermoso may sell a combined holding of up to 30 percent.
Though no price has yet been quoted, analysts believe 30 euros per share, twice the current rate, will cover it.
The move shows Lukoil’s ambition. A stake in Repsol would increase Lukoil’s refining presence in Europe. The refineries in Romania, Bulgaria, Ukraine and Italy are not enough for Lukoil to be considered a “global company, according to analysts.
Respol manages five refineries in Spain, three in Argentina and one in Peru, with a total refining capacity of 1.23 million barrels per day.