The size of LUKOIL’s investment program is the biggest of all oil companies of Russia.
Photo: Alexey Kudenko
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LUKOIL to Develop for $100 Bln
Russia’s oil blockbuster, LUKOIL, would funnel $100 bln into development up to 2016 under the investment program, which size is the biggest of all oil companies of Russia. The analysts say LUKOIL will hardly incur difficulties when raising money on the market but its program has been shaped in view of the very optimistic forecasts that are directly tied to the world prices for crude.
LUKOIL will invest $100 billion up to 2016 under development program. Of this amount, $35 billion will go for refining and sales, LUKOIL 1st Vice President Vladimir Nekrasov made clear Tuesday.
When speaking about this investment program, Leonid Fedun, who is the vice president at LUKOIL, said in June that the company is set to double production from existing fields in the following ten years. LUKOIL produced 90.2 mln tons in 2005, so its intention is to fetch up 180 mln tons by 2016 with no new acquisitions taken into account.
ExxonMobil produced 126 mln tons of crude in 2005, and BP reported the output of 130 mln tons.
The long-term investment program of LUKOIL is the most ambitious of all oil companies of Russia. The appetite of LUKOIL’s key competitor, Rosneft, is much more moderate. Fresh from IPO, Rosneft is under the non-disclosure commitment and its long-term program of investing (if any) is a top secret yet.
But Rosneft promised in March to annually funnel $3 billion into production during a decade ($30 billion up to 2016), and its President Sergey Bogdanchikov vowed in June to invest $2.7 billion in refining in the following five to six years. So even if Rosneft invests the equal amount in another five years, its overall investments will be still at least three fold below the investments announced by LUKOIL.
www.kommersant.com
All the Article in Russian as of Sep. 06, 2006
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