By 2016 LUKOIL intends to raise the output to 4mln barrel per day, the company’s strategic program for 2007-2016 says. The program was presented by the company’s President Vagit Alekperov on October 18 in New York. The average annual rate of growth of hydrocarbon production is scheduled to increase by almost 50% to 6.7% (compared with the previous strategic development program). The Company’s investment program will total $78 bln, assuming the conservative scenario, or $112 bln including acquisitions, assuming the optimistic scenario. In the latter case acquisitions will represent nearly a third of total investments. The proportion between investments in exploration & production and in refining & marketing will be 70:30. Capital expenditures per barrel of production will remain lower than average level of main international companies.
Lukoil aims to rise output to 4 mln BPD by 2016
LUKOIL’s biggest investment projects in Russia are development of oil & gas provinces in the north of the European part of the country and on the shelf of the Caspian Sea. Daily production of hydrocarbons by LUKOIL Group will increase to 3.5–4.0 mln boe, depending on the scenario. The share of gas in overall hydrocarbon production volumes will increase from 6% in 2005 to 33%. The strategy of accelerated growth will place LUKOIL among the largest global energy companies. The main aim is to achieve increasing growth rates and to maximize shareholder value.