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Russia's Lukoil to spend US$100 billion in next decade, up output 50 percent

Russia's Lukoil to spend US$100 billion in next decade, up output 50 percent

OAO Lukoil will invest US$100 billion (euro79 billion) in the coming decade in an effort to increase output by 50 percent, to 3 million barrels per day, the president of Russia's biggest oil producer said Friday.
Vagit Alekperov was discussing Lukoil's 10-year development plan, which was approved by the company's board on Sept. 3 and is due to be officially presented in New York on Oct. 19.
"It foresees rather serious investment," Alekperov said in the ex-Soviet republic of Azerbaijan.
"In the coming 10 years more than US$100 billion (euro79 billion) must be invested in developing the company," he said.
Alekperov also said that Lukoil aimed to raise its natural gas production nearly fivefold, to 50 billion cubic meters per year.
"Lukoil has transformed from an oil company into an oil-and-gas company," he said.
Alekperov said the company could soon make major refining acquisitions and bemoaned the fact that just 15 million tons of the 50 million tons of oil that Lukoil exports each year was refined at its own plants.
"Indirectly, by failing to reach the end consumer we lose US$100 (euro79) per ton," Alekperov said _ or $3.5 billion (euro2.8 billion) from the oil the company doesn't refine itself.
Expanding on the company's strategy, Alekperov said all noncore assets such as drilling, transport and shipping subsidiaries would be sold at auction to new owners. Long-term contracts would then be drawn up with the spun off companies, he said. Lukoil and its top managers would also pull out of projects that weren't connected with the core business of extracting, refining and marketing oil, he said.
"Consultants and analysts have advised me to concentrate more on Lukoil's main business," he said.
Russia is the world's second largest exporter of oil after Saudi Arabia.


Updated : 2021-05-07 22:06 GMT+08:00