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11/19 15:26 LUKoil says partners invest $9 bln in Kazakh deal
PRAGUE, Nov 19 (Reuters) - Russia's NK LUKoil , British Gas <GAS.L>, Italy's Agip SpA [AGIS.CN] and Texaco Inc <TX.N> will jointly invest some $9 billion in a project to develop the Karachaganak oil and gas fields in western Kazakhstan, LUKoil Chairman Vagit Alekperov said on Wednesday.
"The companies' overall investment is close to $9 billion," Alekperov told a news conference during a visit to Prague.
LUKoil has a 15 percent stake in the production sharing venture. It took the stake from Russia's Gazprom.
The 40-year agreement with the Kazakh government for the development of the fields was signed in Washington. British Gas said in London the field has recoverable reserves of 2.4 billion barrels of oil and 16 trillion cubic feet of gas.
Italy's Agip, which will have a 32.5 percent stake in Karachaganak, along with BG Plc, said that investment in that field alone could reach 47 billion over the 40 years.
Alekperov said existing pipelines could transport oil and gas from Karachaganak across Russian territory.
"Our participation in the project will allow shareholders to optimise transport schemes for oil and gas," he said.
LUKoil said in Moscow on Wednesday that half of the project's main output would be transported along a new Caspian pipeline, being built to link the Kazakh Tengiz filed with the Russian Black Sea port of Novorossiisk.
The pipeline is due to be operational at the end of 2000.
"With the introduction of the new Caspian pipeline, the question can arise of a further increase in volume," Alekperov said.
LUKoil said output would be increased in phases, rising from 3.6 million tonnes a year to 8.0 million and peaking at 12 million after 2001.
LUKoil on Monday linked up with Gazprom and Royal Dutch/Shell Group <RD.AS><SHEL.L> to bid jointly for a stake in Russian state oil company Rosneft.
Alekperov said the three companies would bid as equal partners.
LUKoil has recently opened its first petrol station in the Czech Republic. Alekperov said LUKoil would invest $15 million in the Czech Republic over the next 18 months.
He said the company planned to operate between 10 and 15 petrol stations in the country.
"Our company today sees the states of Eastern Europe as a promising market," he said.
-- Nigel Stephenson +420-2-2423-0003
prague.newsroom@reuters.com |
