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As part of a new development strategy, Lukoil plans to invest more than US$100 billion in various projects, primarily in Russia, Vagit Alekperov, the chief executive of Russia’s second-largest oil producer, told President Vladimir Putin during a meeting on Tuesday.
Lukoil is preparing a new strategy and will start actively working in the Baltic shelf, Alekperov told Putin in a meeting to discuss the company’s 2019 performance and plans for the future.
Outside Russia, the privately owned Russian oil producer sees development and investment opportunities in West Africa, which is one of the most promising markets, Alekperov said.
Lukoil is already present in three countries in West Africa, while another four countries in the region offer the Russian company joint development work, the manager told Putin.
Russian oil companies are encouraged to work in West Africa after a Russia-Africa summit which Putin hosted in October.
Lukoil is looking at joint oil and gas opportunities with Saudi Aramco in Africa, Alekperov said at the Russia-Africa forum in October. Lukoil and the Saudi oil giant are in good relations and constantly exploring joint opportunities in third countries, including in Africa, the Russian manager said.
Now Russian companies, including Lukoil, are looking for deals in West Africa.
In Russia, Lukoil expects that total Russian crude oil and condensate production could rise to more than 12 million bpd by 2035, if global demand for liquid hydrocarbons continues to grow, the company said in a new forecast last month. Currently, Russia pumps around 11.2 million bpd of oil and condensate.
Referring to the U.S. sanctions on Russia’s oil industry, Lukoil said that although these restrictions are unlikely to impact domestic production in the near term, they will have a significant impact in the long term.
Commenting on the OPEC+ deal, which Russian firms have criticized, Lukoil said in December after the OPEC+ meeting that “We expect that Russia will remain a party to the OPEC+ Agreement for a long time, coordinating its activities with other oil-producing nations.”
By Tsvetana Paraskova for Oilprice.com
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Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews.