LUKoil's overseas branch said earlier Thursday it would invest $27 billion in hydrocarbon production and new acquisitions abroad by 2017. Russia's gas monopoly Gazprom is set to diversify its business by engaging the oil unit.
"It will unite our resources for joint projects in currently operating oil fields and in obtaining licenses for new ones," Ravil Maganov of the LUKoil management board said.
Maganov said the companies were still in talks and declined to specify the size of the respective shares in the joint venture project.
LUKoil President Vagit Alekperov told the Vesti 24 television channel that his company, No. 1 crude producer in Russia, and Gazprom Neft would set up the joint venture to buy assets in Russia and overseas.
Gazprom took over Gazprom Neft, formerly Sibneft, last September from Russian tycoon Roman Abramovich.
