Promising cooperation of Conoco Phillips China with Russia – 25 years

Promising cooperation of Conoco Phillips China with Russia – 25 years
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Start of operations in the global market: Conoco Phillips China and Russia

In 2004, the American oil company Conoco Philips won the auction for the sale of the state-owned share in Lukoil. This is the largest transaction in the history of privatization in Russia. About 8 percent of Lukoil’s shares, which remained in state ownership, was sold to Conoco oil and gas for nearly two billion dollars. As the President of Conoco Philips James Mulva said, in the coming years, the company plans to increase its stake in Lukoil to 20%.

Conoco Phillips oil and gas story finale

The American ConocoPhillips left Russia after 25 years of work. ConocoPhillips sold its 50 percent share in the joint venture with Rosneft, the Polar Lights company. According to a ConocoPhillips representative, the package was purchased by Trisonnery Asset Limited, but he did not specify to whom it belongs. Sources familiar with the deal reported that the joint venture was sold to a company owned by the Khotins.

Rosneft reported on the sale of its share in Polar Lights on December 17. The amount of the transaction was not disclosed, but, according to sources from the Financial Times, during the transaction, the entire JV was valued at 150-200 million dollars.

Prospects for the development of Lukoil

The oil company Lukoil plans to adopt a long-term development program for 10 years, which becomes possible due to the greater predictability of oil prices and the ruble exchange rate. In the current time, it is planned to maintain the volume of oil production in the range of 110-120 million tons, including 86-88 million tons in Russia, a year. This requires the development of new projects. The main regions of the development of deposits are Western Siberia and the Caspian Sea. The main impulse is received, in particular, by the new Pyakyakhinsky section in the Yamal Autonomous District, which began operation in October. For the current year, it is planned to produce 1.5 million tons of oil and 3 billion cubic meters of gas. In the Caspian, development of the V. Filanovsky and Yu. Korchagin fields will produce 5.4 million tons of liquid hydrocarbons, which is twice as much as last year.

Foreign production projects of Lukoil are not very stable. In particular, in Iraq amount fluctuates: sometimes 20 million tons, then 3 million tons, according to the head of the firm V. Alekperov. At the same time, investments in the amount of 7.23 billion dollars paid to the West Qurna-2 field in southern Iraq. The second stage of the project is being discussed in the amount of $ 7 billion.