the RUSSIA oil & gas competitive intelligence report - Report Buyer

Russia Oil and Gas Competitive Intelligence Report 2010
previous announcement made in April 2009, which put the North Caspian target at 260,000b/d and 14bcm
by 2016. The April 2009 announcement called for RUB390bn (US$16.6bn) of Caspian investment.
After Korchagin, the second field, the larger Filanov (Filanovskoe), is due onstream in 2014. Gas output
from Korchagin and Filanov will be pumped to the Russian region of Kalmykiya and then onwards to
Gazprom’s trunklines. Development of the mostly gas-bearing Khvalynskoe deposit on the Kazakh
maritime border is carried out under a PSA held by the Caspian Oil and Gas Company consortium
comprising Lukoil (50%), state-run KazMunaiGaz (KMG, 25%), and French companies Total (17%)
and GDF Suez (8%). Khvalynskoe is expected to peak at 8bcm and is preliminarily due onstream in 2016.
The North Caspian fields are located relatively close to Lukoil’s refineries including plants at Odessa
(Ukraine), Bourgas (Bulgaria) and Ploieşti (Romania).
In June 2009, a state-run Russian financial institution acquired a stake in Lukoil. The companies did not
comment on the size of the stake and the terms of the deal, but unnamed sources have told Reuters that
the stake is less than 5%.
Lukoil and Transneft have allegedly approached Polish refiner PKN Orlen over buying a stake in
Lithuania's Mažeikių refinery, Polish media reported in April 2009. PKN’s trumping of Russian bids for a
controlling stake in Mažeikių in 2006 coincided with Transneft’s decision to shut down the refinery's
feedstock pipeline owing to apparent technical problems.
One of the company's most high-profile foreign deals, the purchase of a 10% stake in Spanish-Argentine
company Repsol YPF, fell through in late 2008 after the Spanish government appeared to implicitly
blocked the deal as a result of popular opposition.
© Business Monitor International Ltd Page 39