MOSCOW, Jan 12 (Reuters) - Lukoil, Russia’s second biggest oil producer, plans to cancel major part of the company’s treasury shares and use remaining treasury shares in a new long-term incentive program for key employees, Chief Executive Vagit Alekperov said.
In a statement, Alekperov added that the board of directors has also supported initiative to establish a share buyback program as an incremental mechanism to distribute capital to shareholders.
Lukoil said on Friday that key priorities for this year include cost optimization as well as hydrocarbon production growth.
Lukoil shares were up 2.5 percent after the statement. (Reporting by Katya Golubkova; Editing by Maria Tsvetkova)