Russian boss denies Exxon link

RUSSIAN oil firm Yukos, which today completed its merger with Chelsea Football Club owner Roman Abramovich's Sibneft, has denied reports that it is planning to sell 40% to oil major Exxon-Mobil.

'This is the latest such report and it just isn't true,' chief executive Mikhail Khodorkovsky said today.

Despite the denial, Yukos shares were trading up 1.8% at an all-time high $15.75 (£9.43) in Moscow, on top of 4% gains last night.

The Yukos-Sibneft merger will create a $45bn (£27bn) giant and net Abramovich nearly $3bn.

Speculation that Exxon may take a stake was fuelled by chief executive Lee Raymond's presence in Moscow, but he declined to comment on the report.

'We are interested in looking at opportunities in Russia but we don't comment on specific projects,' Raymond said.

Yukos-Sibneft represents one of the last remaining opportunities for the world's supermajors to invest in the lucrative Russian market after BP's pioneering £4bn deal earlier this year with TNK.

Industry sources believe Shell is also looking at Yukos and may consider a tie-up with Russia's leading gas producer Gazprom if it loses out to Exxon.

The output of the combined Yukos-Sibneft will be more than that of Kuwait at some 2.2m barrels of oil a day.

Chevron Texaco was preparing a deal to buy a 25% stake in Yukos two months ago if its merger with its domestic rival fell through.