Lukoil Shelves $1.8 Billion U.S. Shale Deal After Gas Slumps

OAO Lukoil, Russia’s second-largest oil producer, shelved a plan to make a $1.8 billion shale acquisition in the U.S. because of slumping natural-gas prices.

The producer backed away from the plan because it didn’t offer an acceptable return, Deputy Chief Executive Officer Leonid Fedun said. U.S. natural-gas prices slumped 55 percent between June and January. Lukoil had set aside $1.8 billion for the deal, according to the company.