Lukoil & Technip Create a Joint Venture Company in Russia

Lukoil and Technip, through their respective affiliates Lukoil -Neftegazstroy and Technip Germany, have signed an agreement to create a 50/50 joint venture company for the development and realization of projects related to oil and gas production, gas processing, refining and petrochemicals in Russia, as well as CIS and other countries. The joint-venture will have the exclusive right to bid on contracts designated by both parties as projects they wish to pursue together in Russia and, from time to time, in other countries as well. The scope of cooperation includes all onshore projects other than drilling activities.

Taking advantage of the complementary capabilities and experiences of both parties, this new joint venture company will be in a position to provide highly effective and competitive engineering, procurement and construction services for project execution to various clients in the Russian oil and gas industry.

Serik Rakhmetov, Vice President of Lukoil, stated: "Technip being one of the best engineering groups in the world, we are convinced that our joint venture will add significant value to projects and therefore to our clients".

Daniel Valot, Chairman and CEO of Technip, commented: "The signature of this partnership agreement with a major Russian construction player bodes well for the growth of our activities in a country where we have 40 years of experience and which has a huge potential for further oil and gas development."