Arab Today, arab today lukoil to consider spinning off downstream assets in europe
Last Updated : GMT 23:05:53
Arab Today, arab today
Arab Today, arab today

Lukoil to consider spinning off downstream assets in Europe

Arab Today, arab today

Arab Today, arab today Lukoil to consider spinning off downstream assets in Europe

Lukoil to consider spinning off downstream assets in Europe
St Petersburg , Russia - Arab Today

Russia’s Lukoil may consider spinning off or selling its downstream assets in Europe to focus on exploration both in Russia and abroad, CEO Vagit Alekperov said.
Lukoil, which is pumping around 2 million barrels of oil per day (bpd) — a little less than OPEC member Venezuela does — is refocusing on upstream both at home and abroad, Alekperov said.
“Most likely, in the future, we will consider the following step: Spinning off (the European downstream business to) a European downstream company or selling the assets. In the medium-term, the company will focus on geological exploration.”
Lukoil is not alone in the move: Global oil majors Chevron Corp. and Royal Dutch Shell are putting small refineries on sale as they look to trim lower-margin assets in the face of headwinds from rising crude oil prices.
“This is downstream only — in upstream we are developing and target Mexico, Iran, Norway,” Alekperov said. “Downstream business is very volatile. When we actively entered that (in Europe), it was on its peak, then we survived a trough, now it is good again. Maybe this is a time to withdraw?“
The split of upstream and downstream is something several oil majors have performed in recent years including the third largest US oil company ConocoPhillips, which at one point owned a major stake in Lukoil.
Conoco is now mostly focusing on upstream while its refining division was spun off in a separate unit called Phillips66.
Alekperov said Lukoil will start a drilling program in Western Siberia in September with the aim of slowing down the rate of decline of oil production to 1.5-2.5 percent in 2017 from 6.5-7 percent expected in the region this year.
Production declines in West Siberia will be compensated by Lukoil’s new assets, including the Filanovsky field in the Caspian sea, to be launched this year. Lukoil also runs the giant West Qurna-2 project in Iraq, as well as other assets abroad.
Lukoil’s production in Russia is seen at around 86.5 million tons of oil this year and 87.5-88 million in 2017, he said. Lukoil’s investments are seen at around $8 billion this year and slightly down next year.

GROWING BIGGER

Lukoil is interested in the state’s sale of a 50 percent stake in mid-sized oil producer Bashneft scheduled for later this year and will compete with other domestic players for the asset which produces around 20 million tons of oil a year.
Alekperov said that Lukoil would be interested to buy into the entire Bashneft, to get a ‘synergy effect.’
Yet, he said, at Bashneft’s current market price of around $9 billion and the premium that the state wants to get during the sale, “this asset becomes less interesting for us.”
Bashneft’s market capitalization stood at $9.4 billion on Friday.
“Have you seen our financial report? We have around $5 billion in cash — so we have 60 percent of cash (for a potential deal) and banks are ready to finance us. Private Western banks — Russian private banks of course don’t have such money.”
Alekperov, 65, owns a bit over 20 percent in Lukoil, which he co-founded in the 1990s and turned into a company with a presence in more than a dozen countries around the world.
His partner, vice president Leonid Fedun, owns a little less than a 10 percent stake.
Lukoil’s board will manage Alekperov’s stake in the event he is incapacitated, he said. “If, God forbid, the lion breathes his last and the hyenas eat him, I think that it (the stake) should remain in one piece,” Alekperov said.
“Lukoil will always remain a global company. It will always remain on London and Moscow exchanges. My heirs would not be able to split the stake I own. In my will it is spelled out, they would not manage it. The board will manage it.”
Alekperov said that Fedun and his heirs have to offer Alekperov their holdings first if they decide to sell.

Source: Arab News

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today lukoil to consider spinning off downstream assets in europe Arab Today, arab today lukoil to consider spinning off downstream assets in europe

 



Arab Today, arab today
Arab Today, arab today Nohan Seyam designs beautiful accessories

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today Tourism shows signs of recovery

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today 11 family members dead in rebel push

GMT 07:57 2017 Tuesday ,21 February

11 family members dead in rebel push
Arab Today, arab today To probe sexual harassment claims

GMT 10:08 2017 Tuesday ,21 February

To probe sexual harassment claims

GMT 14:57 2017 Monday ,20 February

A giant initial public offering on track

GMT 14:50 2017 Monday ,20 February

Energy Market Research

GMT 09:38 2017 Monday ,20 February

Japan returns to trade deficit in January

GMT 07:16 2017 Monday ,20 February

Global arms trade highest since Cold War

GMT 06:10 2017 Monday ,20 February

Tourism shows signs of recovery in Egypt

GMT 05:45 2017 Monday ,20 February

Brexit U-turn ruled out by many in EU
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today 57 monkeys carrying 'invasive' genes

GMT 16:00 2017 Tuesday ,21 February

57 monkeys carrying 'invasive' genes
Arab Today, arab today 63-Year-Old Woman Delivers Baby

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby
Arab Today, arab today Small ponds have outsized impact

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Ahmed Fahmy stresses he did not ignore singing

GMT 06:34 2017 Sunday ,19 February

Ahmed Fahmy stresses he did not ignore singing
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars

GMT 21:11 2017 Saturday ,18 February

Egypt to hold first session of Arab film festival

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed

GMT 12:22 2017 Monday ,20 February

Kanye West puts hijab-wearing model

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 14:51 2017 Monday ,20 February

Ways to acquire presentation skills

GMT 19:16 2017 Friday ,17 February

Aziz House ready to host the tourists

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:39 2017 Monday ,20 February

newest smartphone another winner for Huawei

GMT 16:08 2017 Wednesday ,15 February

Shawsh reveals her collection "Jewelry of dreams"
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday