Russian oil major Lukoil may invest approximately $7.5-8 billion in 2017 and around $100 billion over the next 10 years, the company’s president Vagit Alekperov said.
“Investments of $8-10 billion per year are the level that allows us to fulfill our obligations – pay dividends in accordance with the company’s policy, taxes and decent wages to employees including indexation”, Alekperov said.
Lukoil plans to stabilize its domestic oil production at 86-88 million tons per year, he also said.
The company currently produces up to 20 billion cubic meters of gas per year and plans to produce around 24-30 billion cubic meters in the medium term, Alekperov said.
Lukoil is keeping interest in participation in privatization of oil company Bashneft and expects the sale to take place in 2017, Alekperov said.
“We are interested in such asset, but as I always note, not at any price. If somebody is awaiting any money from us – this will not happen. There will certainly be clear calculations. There are circumstances of the present day, oil price and the asset’s economy, and the final price should be based on them. That’s why we would like to receive all documents from a bank-organizer first in order to make a due diligence and make our offers only after that. As I understand, this is being delayed for a later period, the work will most likely be held next year”, he said.
The government has not yet chosen a way to sell Bashneft and has not yet announced any auctions, Alekperov said. “Even banks-advisors are not holding now any talks with potential bidders, because there is no decision on privatization yet. That’s why we are in the waiting position”, he said.
The government earlier planned to sell 50.08% in Bashneft appraised at 297-315 billion rubles in September-October, but then decided to postpone the deal and privatize oil major Rosneft at first.
Speaking about additional tax burden on the oil industry, Alekperov said this could lead to the sector’s stagnation.
“Additional collections can lead to stagnation of our industry, I do not think that the government will go there,” he said. (Prime/Business World Magazine)
