Lukoil to invest heavily in North West region

Russian company Lukoil plans to invest at least 130 billion rubles ($4.5 billion) in the North Western federal region of Russia over the next 10 years. Exploration and development of the area will eat up a good portion of the money, but another issue is just as important: Development of the region is made difficult by poor transportation infrastructure, said a Lukoil statement.

Feb 20th, 2001


By the OGJ Online Staff


HOUSTON, Feb. 20
�Russian company Lukoil plans to invest at least 130 billion rubles ($4.5 billion) in the North Western federal region of Russia over the next 10 years.

Exploration and development of the area will eat up a good portion of the money, but another issue is just as important: Development of the region is made difficult by poor transportation infrastructure, said a Lukoil statement.

"The company supports creation of the Baltic Transportation System that will allow [development of] the southern group of the Timan Pechora oil fields. And Lukoil will adjust its field pipelines, including construction of the pipeline between the Kharyaga field and the Usinsk Headworks, accordingly," said a statement.

However, Lukoil said an analysis prepared jointly by Lukoil and Conoco Inc. concluded transportation by sea is more advantageous. The proposed system will include onshore and offshore pipelines and a stationary ice-resistant sea terminal.

This program also envisages construction of ice-going tankers, development of ice-going fleet, enhancement of a transshipment base of the northern fleet, construction of an oil refinery in the Murmansk region, and use of the Varandei sea terminal. In 2000, efforts aimed at improvement of the transportation system resulted in construction of the transshipment terminal in Kaliningrad.

More in Refining