By the OGJ Online Staff
HOUSTON, Oct. 24 -- Lukoil, Russia's biggest oil company, plans to invest 20-25 billion rubles ($678-847 million) in the Uralsky federal district over the next several years to expand production of oil and natural gas production and to improve refining operations.
In order to increase natural gas production in the Uralsky district, Lukoil plans to develop new gas fields, construct and install gas processing facilities, and modernize gas collection systems.
Lukoil plans to spend 15-20 billion rubles ($508-678 million) through 2005 to reconstruct and modernize an oil refinery in Perm, improving its operating capacity to a European average of 90%-92% from its current level of 78%-79%. The range and quality of refined products also will be improved, said officials.
The company will also continue to develop marketing activity in the region, to the tune of more than 3 billion rubles ($100 million).
Lukoil Pres. Vagit Alekperov met Tuesday with Peter Latyshev, district representative of the president of Russian federation, and other government officials in Ekaterinburg to discuss the company's activities in that area.
He heard complaints of acute problems with the fuel and energy complex in the district, particularly in the Primorie region.
Participants stipulated the need to coordinate government and industry actions. They discussed the possibility of creating strategic fuel and power reserves in each federal district to effectively prevent regional fuel shortages.
Officials said oil companies working in a given federal district could supply heating oil and other petroleum products to assist in creating and maintaining such reserves.
