News 2014
April 2014LUKOIL
Vagit Alekperov, President of OJSC LUKOIL, signed the sale and purchase agreement, according to which LUKOIL sells 50% of its participating share in the Caspian Investment Resources Ltd to Sinopec, China. The price of saleable shares will be set around $ 1.2 billion and is subject to a number of adjustments at the date of transaction completion.
Caspian Investment Resources Ltd, through a number of joint ventures, owns the various participating interest in 4 hydrocarbon production projects in Kazakhstan. In 2013 the share of LUKOIL in hydrocarbon production for these projects amounted to 10.2 million barrels of oil equivalent. The deal was made in order to optimize the foreign portfolio of hydrocarbon assets of LUKOIL.
Completion of the deal will require the fulfilment of a certain number of preconditions. In particular, it is necessary to obtain the permission from the state bodies of the Republic of Kazakhstan. Full closure of the deal is expected by the late 2014. At the same time, LUKOIL continues to participate in the projects related to the production of hydrocarbons in Kazakhstan, such as Karachaganak, Kumkol and Tengiz projects.
The company is also a member of the Caspian Pipeline Consortium. "We continue to work in Kazakhstan and are interested in increasing the investments in this country. The company intends to redirect funds to projects in the field of geological exploration, including the Kazakhstan sector of the Caspian Sea. Besides, it is planned that in April 2014, the company will announce a tender for the prospective construction of a lubricant production facility in the region of Almaty,"- said Mr. Vagit Alekperov, President of OJSC LUKOIL.