Lukoil Positive About Iran Investment Plan

Lukoil plans to keep pumping 100 million tons of oil per year between 2018 and 2027 with projects outside Russia, including potential investments in Iranian oilfields, to keep annual investment at $8-8.5 billion, the chief executive said on Saturday.

Lukoil, Russia’s No. 2 oil producer that has suffered from sluggish output from its Western Siberia fields, has kept production steady by focusing on growth in new regions, such as the Caspian Sea and Iraq. It is also looking at Iran and Mexico, Reuters reported.

Lukoil Chief Executive Vagit Alekperov said he would meet Iranian Oil Minister Bijan Namdar Zanganeh in Moscow on October 3.

Tehran has said it expects to sign deals in the next five to six months with Russian firms, such as Lukoil, on developing Iranian oil and gas resources.

Lukoil has been in talks with the National Iranian Oil Company on taking part in the development of Ab-Teymour and Mansouri fields in central-western Iran.

“We are very close; we have some disagreements that are not crucial, regarding output volumes and the pace of coming to any given levels,” Alekperov said, adding he was confident the differences could be resolved.

Alekperov also announced details of the company’s 2018-27 strategy to reporters at the launch of the firm’s gas facilities in Uzbekistan. He said details would be discussed by the board in December.

"Under the new strategy, Lukoil planned to add 1.1-1.2 billion tons of hydrocarbons to reserves while its gas output would reach 35-40 billion cubic meters per year by 2027," he said.

"The 2018-20 budget would be based on an oil price of $50 per barrel and a rouble rate of 62-64 rubles to the dollar," added Alekperov who is also a major Lukoil shareholder.

Lukoil, a big oil products importer on the European market, would continue to work on European projects and keep its retail net in Turkey, the CEO said, despite new US sanctions imposed on Moscow this year.

He also said the firm was talking to Italy’s Eni on joint projects in Mexico. In Uzbekistan, Alekperov said Lukoil would invest $3 billion in gas projects by 2021-22.

source: Financial Tribune