Lukoil Eyes Exit from Saudi Venture
Lukoil plans to withdraw from a joint gas project with Saudi Aramco in Saudi Arabia, its CEO Vagit Alekperov told reporters on October 23, according to Interfax.
Lukoil’s Luksar joint venture with Aramco discovered two fields in 2009 with 300-400bn m3 of gas and 70mn mt of condensate, according to the Russian company. First gas from the Tukhman and Mushaib deposits was initially expected in 2015, but Lukoil could not agree on a price at which to sell the gas to Aramco.
The project was complex with ultra-deep reservoirs, according to Alekperov, stating that the Saudi side “could not create the conditions for it to be economically feasible to develop.”
Lukoil continues to discuss joint ventures with Aramco in third countries, however.
“We are constantly discussing joint opportunities with them, including their interest in third countries, in Africa, but this is still at the stage of studying and talks,” the CEO said. The pair are not currently negotiating a venture in Uzbekistan, one of Lukoil’s largest overseas focuses, he added.
Alekperov's announcement comes a week after Lukoil reported striking a deal to enter the UAE, buying a 5% stake in the offshore Ghasha concession.