RusEnergy

MOSCOW, November 9 (RIA Novosti) - Russian oil major LUKoil has decided to establish a 100% subsidiary, LLC International, to produce and sell oil, the company said in a statement Wednesday. The new subsidiary will consolidate the company's accounting, objectively assess financial results, promptly respond to the market situation, improve and develop the production of oil, conduct research, and optimize oil sales with minimal infrastructure changes, the statement said. The new subsidiary will conclude the company's management reforms in this segment that began in February 2005. The decision to establish a new subsidiary was based on the experience of strategic partnership between LUKoil and ConocoPhillips, the company said. "Leading international oil companies, which have separated this business, have been able to achieve positive results and maximum transparency," the statement said. LUKoil refineries produce more than 40% of oil in Russia. In the first half of 2005, LUKoil's production reached 550,800 metric tons.