By OGJ editors
HOUSTON, May 16 -- OAO Lukoil subsidiary Lukoil Western Siberia has agreed to buy Marathon Oil Corp.'s exploration and production business in Siberia for $787 million and plans to boost production from the nine oil fields involved.
Closing, subject to government approval, is expected in mid-July. Marathon, which acquired the assets nearly 3 years ago, said it has doubled oil production in the Khanty Mansiysk Autonomous Region to more than 30,000 b/d.
Lukoil issued a statement indicating its plans to gradually double output from current levels. Assets include 95% of OAO Khantymansiyskneftegazgeologia and 100% of both OAO Paitykh Oil and OAO Nazymgeodobycha.
"This production region is relatively less explored and considered to have higher discovery and reserve addition potential than average" for that region, Lukoil said.