Lukoil, Yukos, Gazprom form Caspian E&P JV

Representatives of Yukos, Lukoil, and Gazprom signed charter documents in Moscow Wednesday establishing a joint venture company, Caspian Oil Co., to explore for and develop oil and natural gas reserves in the Caspian Sea region. The three companies announced plans earlier this year to form the JV (OGJ Online, June 6, 2000). Each will own one-third of Caspian Oil Co. equity.

Establishment of the JV will allow joint investment from the founders to develop reserves, said Yuri Beilin, president of Yukos EP. The companies plan to use the most recent oil recovery techniques in the Caspian, he said.

The company will be managed by a general director and supervisory board, with officials elected for a 2-year term. Alexander Porokhnin, who previously worked for Lukoil-Astrakhanmorneft, will serve as Caspian Oil's general director for the next 2 years.

The supervisory board will include two representatives from each company. Yukos EP Vice-Pres. Alexander Afanasenkov was elected chairman of the supervisory board.

Caspian Oil will be based in Russia's Astrakhan oblast.

The company will seek licenses for exploration on the promising structures in the shallow waters of the North Caspian. It has drafted a geological program that includes conducting a seismic survey this year.

Combining the efforts of three leading Russian companies will not only contribute to economic growth but also strengthen Russia's position in the Caspian region, said Ravil Maganov, first vice-president of Lukoil. Lukoil made an apparently major oil and gas discovery in the Russian sector of the Caspian earlier this year (OGJ Online, June 20, 2000).