lukoil of russia plans middle east expansion
Last Updated : GMT 07:25:12
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 07:25:12
Arab Today, arab today

Lukoil of Russia plans Middle East expansion

Arab Today, arab today

Arab Today, arab today Lukoil of Russia plans Middle East expansion

http://www.arabstoday.net/en/business-87/kuwait-bourse-ends-monday-session-in-red-zone-161216
Abu Dhabi - Arab today

Russian oil giant Lukoil is targeting new projects in the UAE, Iran, Oman and Kuwait as it plans to expand its operations in the Middle East, the company’s vice president in the region Gati Al Jebouri told Gulf News in an interview.

The company is currently involved in two projects in Iraq including West Qurna-2 oilfield where the daily oil production is 400,000 barrels and in the exploration of Block 10 in Southern Iraq. The company also has projects in Egypt where the daily production in Lukoil’s share is about 6,000 barrels per day.

“Our desire and wish is to grow the business significantly in the Middle East, part of that growth comes from Iraq because we recently announced a successful discovery on the Block 10 and we will be carrying out further appraisal wells during 2017. We are investing in further drilling and in the future will be developing the field which will bring significant production.”

“In other parts of the Middle East, we are in active discussion with NIOC (National Iranian Oil Company) to develop two oilfields, Ab-Teymur and Mansuri, in Western Iran. We have proposed detailed plans of how we would develop those fields and are expecting to be awarded a contract. We are also looking at opportunities in Kuwait, Oman and the UAE.”

“In Abu Dhabi, the current licence extension on the onshore projects shows a clear wish by the authorities to invite a variety of international oil companies and we look forward to being able to participate in offshore license extension that will happen in 2018

Abu Dhabi National Oil Company (Adnoc) recently awarded 40-year contracts to six international oil companies including Total, BP, Inpex, GS Energy, CNPC (China National Petroleum Corporation) and CEFC China Energy Company to develop a number of onshore oilfields that account for the bulk of the UAE’s oil production of about three million barrels per day.

Adnoc will decide future partners for the offshore concession which expires in 2018.

Iran contract

On Iran, Al-Jebouri expressed optimism about signing the agreement once the terms of the contract are finalised.

“The final version of IPC (Iran Petroleum Contract) is yet to be approved. Once that it is done, we believe that the contract signing will commence which is expected to be in second half of this year or early 2018. We are very much hoping to reach agreement that would enable us to sign contracts.”

Iran, the third-largest producer within the Organisation of the Petroleum Exporting Countries (Opec), has been seeking to increase its oil output and attract foreign investment since the lifting of international sanctions last year.

Last month Iran named 29 companies including Lukoil from more than a dozen countries that will be allowed to bid for oil and gas projects using the IPC model, that offers sweeter terms for the development of the oil projects.

Iraq operations

Speaking on West Qurna-2 oilfield in Iraq, Al-Jebouri said they are looking at different ways of developing the project and increase oil production to 1.2 million barrels per day from the current levels of 400,000 barrels per day.

The company entered into a 25-year contract with the Iraqi government to develop the project in 2010 and invested close to $7 billion (Dh25.6 billion) to build facilities including pipelines, power stations, accommodation for workers and drill necessary wells to develop the project. The entire amount was repaid by the Iraqi government, he said.

“Going forward, we are in discussions with Iraqi authorities on how we can develop the second phase of West Qurna-2 and depending on those discussions we will determine how much investment is necessary to reach 1.2 million barrels per day of production.”

Global crude production

The total hydrocarbon production of Lukoil globally has reached 2.2 million barrels per day in 2016 with the Middle East accounting for five per cent of the total production, he said.

Lukoil is one of the world’s largest vertically integrated public oil and gas companies, it accounts for over 2 per cent of global crude oil production and around 1 per cent of the world’s proved hydrocarbon reserves.

When asked whether they are happy with the current oil prices, he said they are always with the oil prices that enable them to invest in the development of the projects and the current level is close to the levels which is acceptable to consumers and also sufficient for investors to invest.

“We would like to see higher prices in future but we want to see prices going up in a way that would enable the stable development of the oil and gas industry and also that supports the economic growth.”

Global benchmark, Brent is currently trading at around $56 per barrel.

Oil price of $55 and $65 per barrel

“I believe that the current market conditions will be less volatile than we saw two or three years ago where we’ve seen dramatic falls and rises in prices over a relatively short period of time. We will see prices varying between $55 and $65 mark this year and next year.”

On the continuation of Opec cuts to stabilise oil prices beyond May, he said it would be appropriate and logical for the cuts to be maintained for another six months.

The company has not received a requested to cut production in compliance with the Opec agreement in Iraq

source : gulfnews

arabstoday
arabstoday

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*

lukoil of russia plans middle east expansion lukoil of russia plans middle east expansion

 



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*

lukoil of russia plans middle east expansion lukoil of russia plans middle east expansion

 



Arab Today, arab today Modern colorful bedroom renovation

GMT 11:23 2017 Thursday ,21 December

Modern colorful bedroom renovation
Arab Today, arab today For the Variety of Interior Design Styles

GMT 11:14 2017 Tuesday ,19 December

For the Variety of Interior Design Styles

GMT 01:55 2016 Monday ,13 June

2 injured in Beirut explosion

GMT 15:00 2017 Monday ,09 January

OPEC Secretary-General meets

GMT 21:42 2014 Saturday ,16 August

Qatar police college receives first batch of students

GMT 12:15 2017 Wednesday ,08 March

Rail House Café appoints Anteater Communications

GMT 08:17 2018 Tuesday ,16 January

No Brexit deal would cost Scotland £12.7bn: study

GMT 00:49 2017 Tuesday ,11 April

Shaheen Air to connect Muscat with Multan

GMT 01:39 2016 Friday ,30 September

Rome's Olympic bid buried

GMT 10:10 2016 Wednesday ,21 December

Christmas cheer missing in crisis-hit Rio

GMT 22:08 2017 Wednesday ,12 April

Hana al-Zaahed prepares for presenting new film

GMT 04:18 2017 Thursday ,13 July

China says June exports up 11.3%, imports up 17.2%

GMT 09:05 2013 Tuesday ,03 December

Syrian renowned actor Salim Kallas passes away

GMT 10:24 2014 Tuesday ,15 April

Lingerie brand PrimaDonna debuts swimwear

GMT 12:16 2014 Saturday ,19 July

Al-Assad names Dr Najah al-Attar as vice president

GMT 06:03 2017 Wednesday ,04 October

PM, education min. discuss educational process
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