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2013 Oil Production will be Boosted by Lukoil, Seek Extension to Iraq deal

16 Jan 2013
OAO, Lukoil, which is the second biggest crude producer of Russia, has expectation for increasing the oil production 1.5 % in 2013 as it invests in Siberian drilling and starts production at West Qurna-2 field of Iraq. Lukoil is a Moscow-based company and it will look for extending its deal to operate the Iraqi field b five years after the Middle Eastern state asked Lukoil for reducing the peak output levels, billionaire Chief Executive Officer Vagit Alekperov stated to the media reporters on 15th January in Novy Urengoi. The request from Iraq is associated with the infrastructure issues and a countrywide reduction in planned output, according to Lukoil last month. A slight growth is expected in 2013 with larger gains in 2014 to 2016 as oil projects start, Alekperov expressed on Tuesday before a meeting on offshore projects led by Dmitry Medvedev, the Prime Minister. Lukoil is looking for new offshore projects in West Africa and Brazil, he stated. Lukoil is drilling in Siberia, the Caspian, Uzbekistan, West Africa and Iran to boost the output after stabilizing the domestic declines in the last year. Volumes had slouched since 2009 as the company withheld investment in expectation of tax breaks, while the company was enforced for writing down the reserves at an underperforming Arctic deposit last year. Vagit Alekperov also said that he will meet with the Iraqi leadership on January 17, 2013 for discussing about the output levels outlines in service agreements. The company is in search for a partner for West Qurna-2 since the Statoil SA of Norway left. Alekperov also stated that they are not just interest in money, but the long-term sales of their products. He said that China would be an attractive business partner for them, where there is stable demand growth. The daily average oil production in Russia began rising in May this year after dropping to its lowest level since at least 2005 April, according to data given each month by Energy Ministry’s CDU-TEK unit. The sum of oil production, which includes international projects, fell to 89.9 million metric tons last year from 90.9 million tons of output in 2011, according to information on the company website. Source: [Bloomberg]
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