Lukoil Plans to Up Oil Production by 1.5% in 2013

MOSCOW - Russia's second-largest oil producer OAO Lukoil Holdings plans to increase its 2013 oil production by 1.5%, the company's chief executive said Tuesday, Interfax news agency reported.

In December, Lukoil forecast 2012 oil output to fall 1% after a 5.5% drop in 2011.

Vagit Alekperov also told reporters the company was studying new shelf projects abroad.

"We are looking at new initiatives in West Africa and on a Brazilian shelf," he said.

In 2013, Lukoil was planning to drill five wells in Africa at a cost of $600 million; three wells in the Ivory Coast, one in Ghana and one in Sierra Leone, Andrey Kuzyaev, president of Lukoil Overseas, said in December.

Lukoil also plans to extend its contract with the Iraqi government on the West Qurna-2 project by five years, Mr. Alekperov said.

Mr. Kuzyaev said last month that Lukoil now estimates that output at the West Qurna-2 oil field will reach 1.2 million barrels per day instead of 1.8 million barrels predicted in an initial estimate. The revision could prolong the production period to 19 years from 12-13 years projected earlier.

Lukoil will channel 325 billion ruble ($10.76 billion) of investment into its existing shelf projects by 2021, RUB6 billion of which has been already invested, Mr. Alekperov said.


Copyright (c) 2012 Dow Jones & Company, Inc.


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