OAO Lukoil’s billionaire Chief Executive Officer Vagit Alekperov boosted control over Russia’s second-largest oil company by spending $77 million this year on stock as larger rival OAO Rosneft buys up oil and gas producers.
In the latest deal, Alekperov bought 701,100 American depositary receipts for $39.9 million on Feb. 20, Moscow-based Lukoil said in a filing. The CEO is the largest shareholder.
Lukoil managers led by Alekperov and Vice President Leonid Fedun have pledged to keep adding to holdings they bought last year. The government has increased control over the oil and gas industry. State-run Rosneft became the world’s largest producer in March when it closed a $55 billion share and cash deal to buy TNK-BP, formerly the country’s third-largest oil producer.
Alekperov bought more than $681 million of shares last year, according to Bloomberg calculations from Lukoil filings. Fedun has said he purchased $400 million in shares last year. He bought 475,000 ADRs valued at $27.1 million on Feb. 20, Lukoil said today in a separate filing.