MOSCOW -(Dow Jones)- Russia's biggest independent oil producer OAO Lukoil Holdings (LKOH.RS) has reset its strategy for the coming decade, focusing on free cash flow above an increase in output, the company said Thursday.

"As a result of the crisis and the ensuing drop in demand for feedstock, uncertainties at financial and consumer markets, the company decided to reset its strategy focus from production growth to growth of free cash flow," Lukoil said in a statement.

The company's board of directors Thursday approved a strategic development program for the 2010 to 2019 period.

Lukoil said an increase in free cash flow will ensure "growth of dividends and buyback of shares."

Company Web site: www.lukoil.com

-By Jacob Gronholt-Pedersen, Dow Jones Newswires; +7 495 937 8445; jacob.pedersen@dowjones.com

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  11-19-09 1003ET
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