• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 15 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days Does Toyota Know Something That We Don’t?
  • 6 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 3 days World could get rid of Putin and Russia but nobody is bold enough
  • 2 days America should go after China but it should be done in a wise way.
  • 6 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 5 days China is using Chinese Names of Cities on their Border with Russia.
  • 6 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 5 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 6 days Putin and Xi Bet on the Global South
  • 6 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 7 days United States LNG Exports Reach Third Place
  • 7 days Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 11 days huge-deposit-of-natural-hydrogen-gas-detected-deep-in-albanian-mine

Lukoil Anticipates Iran Re-Entry

Lukoil President Vagit Alekperov said that his company is seriously considering reentering the Iranian energy market following the removal of international sanctions earlier this year

In remarks made to a Russian media group on 16 June, the Lukoil chief expressed interest in exporting oil and natural gas to Iran as soon as this September or October.

“It is mostly agreed on, according to my information, but there are minor details left. But as a rule, those details are always where the problems hide,” said Alekperov, alluding to the need for Russia to create a law permitting foreign investment in Iranian projects.

Alekperov believes Lukoil could pursue “exploration projects and projects that require rehabilitation” in Iran, and expressed confidence that his company could rejoin Statoil of Norway in resuming the suspended onshore Anaran venture. Lukoil in 2010 cited U.S. sanctions as the reason it withdrew from the plan in 2010. Anaran encompassed four sites holding estimated reserves of two billion barrels of oil.

Nevertheless he detailed a series of preconditions prior to potentially resuming the venture.

“The previous buy-back conditions would be unacceptable today because they don’t stimulate investors and don’t allow them to take the acceptable risk we’ve always allowed ourselves under production sharing contracts or joint ventures,” he declared.

As mentioned by OilPrice.com on June 15th, international sanctions against Iran were lifted last January following the shutdown of the country’s controversial nuclear program. The regime under Hassan Rouhani has attempted to restart trade ties with countries such as Russia in an attempt to rebuild an oil industry hamstrung by sanctions. Bilateral economic ties have strengthened though Iran’s ambassador to Russia called for the expediting of trade relations

Related: Rebels And Tax Avoidance: Chevron’s Problems Pile Up

Aside from referring to Iran, Alekperov said Lukoil could sell off its four European refineries that are located in Bulgaria, Romania, Italy, and the Netherlands. Lukoil in recent years has concentrated mainly on the exploration of gas and oil fields; thus, he doesn’t view the refineries as “strategic” assets.

ADVERTISEMENT

Lukoil might sell part or all of its oil refining business in Europe or potentially spin off its oil refineries in a separate entity and seek to attract investors into it, according to Alekperov.

By Erwin Cifuentes for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News