Lukoil

Energy
MCX: LKOH
Russia

[email protected]

LITASCO

Reuters lists Lukoil among companies that "signed contracts with Iran for oil and gas exploration, development and production, but froze their activities due to the sanctions.

Russia’s second biggest oil producer, Lukoil, signed several memoranda of understanding (MoU) with the National Iranian Oil Company (NIOC) in 2016 for development of Abe Timur and Mansouri oilfields in central-western Iran.

Lukoil decided in 2018 not to go ahead with plans to develop the projects due to the threat of U.S. sanctions." (Reuters, "Factbox: Iran hopeful for oil majors to return once sanctions lifted," 3/3/22)

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"Russian private-sector oil firm Lukoil said it is ready to return to Iran if and when sanctions restricting foreign investment in the country are lifted.

Before the US reimposed sanctions on Tehran in 2018, nearly all of Russia's leading oil companies were actively looking to invest in Iran and had signed deals to study field developments. Lukoil had been working on a development plan for the 15.1bn bl Mansouri field in western Iran and had also hoped to secure a licence for the 12.2bn bl Ab Teymour field.

'We have advanced considerably,' Lukoil chief executive Vagit Alekperov said today on the sidelines of the St Petersburg Economic Forum. 'We have all the documents ready ... if restrictions are lifted, we will be glad to resume talks and implementation of the project.'" (Argus, "Russia's Lukoil says ready to return to Iran," 6/3/21)

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"The company was reported as potentially seeking hydrocarbonrelated business in Iran. In 2018 CalPERS designated the company as under review. In 2019 CalPERS changed the designation to “being monitored” because CalPERS’ initial screening has not identified the company as having involvement in the regions and/or activities targeted by the Act. CalPERS has maintained the company in “monitor” status for 2020. CalPERS continues to monitor the company for possible changes in status relevant to the Act."

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"In 2009, LukOil OAO confirmed to CalSTRS that it did not have any business in Iran. However, the company does have a 10% stake in the Shah Deniz Field operated by BP, which has Iran as a partner. The Shah Deniz Field operates under exemptions to the Iran sanctions. In 2016, LukOil OAO reportedly signed an agreement for hydrocarbon exploration in Iran. In 2014, CalSTRS re-evaluated LukOil OAO and its sanction controls and relations with the National Iranian Oil Company (NIOC) relating to the Shah Deniz Field. In 2015, CalSTRS designated LukOil OAO as “Being Monitored” due to media speculation that Russian firms were seeking business in Iran. In 2018, Lukoil OAO put its Iranian-based projects on hold due to U.S. sanctions on Iran. CalSTRS maintained the “Being Monitored” status due to sensitivity around Russian-based investments and to further review how the hold status affects the investment. In 2019, CalSTRS maintained the “Being Monitored” status as the company continues to take actions that demonstrate a potential to revive business in Iran and continued that status in 2020."

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In 2020, the U.S. state of Mississippi listed Lukoil on its state lists of Companies Doing Business with the Iranian Petroleum/Natural Gas, Nuclear and Military Sectors, rendering it ineligible for investment and/or state contracting.

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In 2018 CalPERS designated the company as under review. In 2019 CalPERS changed the designation to “being monitored” because CalPERS’ initial screening has not identified the company as having involvement in the activities targeted by the Act. CalPERS will continue to assess and/or monitor the company for possible changes in status relevant to the Act. 

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In 2014, CalSTRS determined to re-evaluate LukOil OAO and its sanction controls and relations with the National Iranian Oil Company (NIOC) relating to the Shah Deniz Field. In 2015, CalSTRS designated LukOil OAO as “Being Monitored” due to media speculation that Russian firms were seeking business in Iran. In 2018, Lukoil OAO put its Iranian based projects on hold due US sanctions on Iran. CalSTRS maintained a “Being Monitored” designation due to sensitivity around Russian based investments and to further review how the hold status affects the investment. In 2019, CalSTRS determined to maintain LukOil OAO as “Being Monitored” as the company continues to take actions that demonstrate a potential to revive business in Iran. 

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In December 2018 Florida removed LukOil from its Iran Continued Examination list. 

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“Sanctions that have been imposed against Iran, do not allow us to invest in projects there. In the middle of the year, we actively worked at the Mansouri field, the contract is almost ready, we are currently finalizing it, though the signing is unlikely – we will not sign it until sanctions are removed,” he explained." (The Iran Project, "Lukoil CEO says company will not sign Mansouri contract with Iran until sanctions removal," 11/13/2018).

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In 2014, CalSTRS determined to re-evaluate LukOil OAO and its sanction controls and relations with the National Iranian Oil Company (NIOC) relating to the Shah Deniz Field. In 2015, CalSTRS designated LukOil OAO as “Being Monitored” due to media speculation that Russian firms were seeking business in Iran. In 2018, Lukoil OAO put its Iranian-based projects on hold due U.S. sanctions on Iran. CalSTRS maintained a “Being Monitored” designation due to sensitivity around Russian-based investments and to further review how the hold status affects the investment.

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According to a Reuters article dated May 29, 2018, “LUKOIL, Russia’s biggest oil producer, said on Tuesday it had decided not to go ahead with plans to develop projects in Iran at the moment due to the threat of U.S. sanctions...” Reuters, “LUKOIL puts Iran plans on hold due to threat of U.S. sanctions,” 5/29/2018. 

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In 2017 the U.S. states of Alaska, Minnesota, Rhode Island, South Carolina, Tennessee listed Lukoil on its list of companies doing material business with Iran rendering Lukoil ineligible for investment and/or state contracting. --

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In 2017 the U.S. state of Florida listed Lukoil on its continued examination list of companies with petroleum energy activities in Iran.

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In 2018 the U.S. state of Iowa listed Lukoil as an Iran restricted company rendering Lukoil ineligible for investment and/or state contracting.
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The head of Lukoil, Russia's oil-producing giant, Vagit Alekperov said he expects to sign contracts with Iran to develop the country's oil fields in 3-4 months. These are the oil fields of Mansuri and Shanguleh, the development of which the National Iranian Oil Company (NIOC) announced a tender in the summer of 2017. (April 12, 2018).

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In 2016 Tennessee used the South Carolina list of "Entities Ineligible to Contract with the State of South Carolina or any Political Subdivision of the State per the Iran Divestment Act of 2014, S.C. Code Ann." as its list of persons it determines engage in investment activities in Iran.Lukoil was included on this list in 2016. "Inclusion on this list would make a person ineligible to contract with the state of Tennessee, if a person ceases its engagement in investment activities in Iran, it may be removed from the list."

In 2018 Tennessee used the New York list of “Entities determined to be non-responsive bidders/offerers pursuant to the New York State Iran Divestment Act of 2012.” BPCL was included on this ist in 2018. Tennessee states "Inclusion on this list would make a person ineligible to contract with the state of Tennessee, if a person ceases its engagement in investment activities in Iran, it may be removed from the list."

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"Iran continues its quest for new crude buyers, especially in Europe, but its loyal customer base will continue to hinge on countries like India and China, whose demand for Iranian crude has observed a steady rise this year. Iran has found interest for its crude in some unusual places in the past few months as it continues it diversify its list of buyers. Earlier this month it agreed to sell 1 million barrels of crude oil to Hungary via Croatia as it seeks to widen its post-sanctions customer base, which now includes cargoes sold to oil major BP, France's Total, Greece's Hellenic Petroleum, Spain's Repsol and Cepsa, Russia's Lukoil, Poland's Grupa Lotos, Portugal's Petrogal and Italy's Saras and Iplom. Iran said it has held talks with Bosnia and Herzegovina this week as it hopes to expand its list of crude oil export destinations. However, its shipments to Asia remain the pillar of its export market." (Platts, "Analysis: Iran eyes new crude oil buyers, Asia remains linchpin," 11/1/2016).

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Lukoil signed two preliminary agreements with the National Iranian Oil Company on Tuesday to study the Caspian Sea's oil and gas potentials, paving the way for Russia's second-largest oil producer to further cement its position in Iran's petroleum market. (October 5, 2016).

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Russia's second-biggest oil producer Lukoil says it is preparing to present Iran with the findings of its studies over two oil fields in the country – a move which could lead to awarding the development of the fields to the company. Lukoil Chief Executive Officer Vagit Alekperov said the technical studies over Mansouri and Ab Teymour oil fields – both located in the southwestern oil-rich Khuzestan province – will be presented to the National Iranian Oil Company (NIOC) in the near future. Alekperov told reporters after meeting Iran’s Petroleum Minister Bijan Zangeneh that Lukoil experts will soon travel to Khuzestan for a further study of the fields. According to Alekperov, Lukoil is also studying an NIOC project in the Persian Gulf. Nevertheless, he emphasized that Mansouri and Ab Teymour are presently Lukoil’s priority. If Lukoil is awarded the development of the fields anytime soon, it will become the first foreign company to win an oil project in Iran after the removal of sanctions against the country. (Press TV, "Lukoil est to win two oil deals in Iran," 9/19/2016).

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"Russian oil and gas major Lukoil is interested in returning to Iran after sanctions are lifted, Lukoil’s CEO Vagit Alekperov said on Wednesday after the meeting with Iran’s oil minister Bijan Namdar Zangeneh. The dialog with Iran’s oil minister is highly meaningful, Alekperov said. 'We are currently exploring opportunities of entering Iran after sanctions are lifted. Lukoil discovered the Anaran field in Iran in its time. Certainly, we are interesting in returning to that field,' Lukoil’s CEO said. No other projects in Iran except Anaran were discussed, Alekperov said. 'We are recently focused on the field we know,' he added. Iran is interested in bringing major investors, Lukoil’s CEO said. 'It is a critical stage now; the point is laws on Iranian fields’ development to be passed after sanctions are lifted,' Alekperov said. Iran will hold a conference for foreign investors on that matter, he added. 'We are highly optimistic and look forward proactive working in Iran after abolishment of sanctions,' Lukoil’s CEO said." (TASS, "Russia’s Lukoil is interested in returning to Iran after sanctions are lifted — CEO," 6/3/15)

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"The head of Lukoil said on Monday that the Russian energy group wanted to return to Iran as soon as sanctions on Tehran are lifted, the latest foreign company to signal interest in developing the country's oil and gas after a nuclear deal with the west. Vagit Alekperov, Lukoil president, told reporters at the IHS CERAWeek energy conference in Houston that the group's office in Iran, recently reopened, was studying geological data so it could take advantage of any opportunities should international sanctions be eased. He said: 'We hope that sanctions will be lifted in the medium term, in the near term, and that we will be able to come back to Iran and come back to the field we were working on.' Mr Alekperov disclosed that he met Iranian oil minister Bijan Zanganeh at the World Economic Forum in Davos, where he signalled that Lukoil was 'ready to participate' in the development of the oil industry." (FT, Russia's Lukoil eyes return to Iran once sanctions are lifted," 4/21/15)

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"Russian oil company LUKoil has reopened its office in Iran, part of a push into the Middle Eastern country amid expectations for the removal of sanctions if a deal to curb its nuclear program is reached. LUKoil first vice president Ravil Maganov made the announcement on April 15, saying: 'We look forward to participation in projects in Iran after the sanctions are fully removed.' Maganov said the Anaran project would be LUKoil's primary focus in Iran but added, 'We are studying geological data from other projects as well.' LUKoil and Norway's Statoil started developing the Anaran oil field in 2003 but were forced to pull out in 2011 due to economic sanctions imposed on Iran. The field near the Iraqi border contains an estimated 2 billion barrels of oil." (RFE/RL, "Russia's LUKoil Reopens Office in Iran," 4/15/15)

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"OAO Lukoil, the Russian oil producer with the most assets abroad, is positioning itself for a return to Iran when sanctions are lifted.  Chief Executive Vagit Alekperov met with Iranian Oil Minister Bijan Zanganeh in Vienna today. They discussed potential developments, including the Azar and Changuleh onshore deposits, according to a person familiar with the meeting, asking not be identified because the discussions are private. 'We're just studying' the situation, Alekperov said in Vienna after the meeting. 'We would like to return to those fields where we know the geology.' Russia's second-largest oil producer has expanded abroad as the government limited access to reserves at home. Lukoil discovered the Iranian fields in 2005, together with Statoil ASA, before writing off projects in Iran in 2010 following sanctions by the U.S. and its allies over the nation's nuclear research program. Lukoil is interested to return after sanctions have been removed, which 'depends on the politicians,' Alekperov said. 'The company worked in Iran for a pretty long while.'" (Bloomberg, "Lukoil Maneuvering for Return to Iran After Sanctions End," 11/26/14)

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"Iran's oil minister met BP PLC and Total SA on Wednesday, in a sign of renewed interest for the country's oil sector. International sanctions ban Western oil companies from entering Iran's oil fields. Earlier this week, Tehran failed to reach a final nuclear agreement with world powers, which could have eased such restrictions. Speaking to reporters, Iranian oil minister Bijan Zanganeh said he met representatives of BP PLC--the first such reported meeting with the British oil giant--and France's Total SA to discuss a possible entry in the country. Total, which was represented by new Chief Executive Officer Patrick Pouyanne, and BP have both previously said they won't work in Iran unless sanctions are lifted. Separately, Mr Zanganeh also met Vagit Alekperov, president of Russian oil giant Lukoil. Speaking to reporters, Mr. Alekperov said that 'as soon as sanctions [are] lifted, we are hoping [to] enter' the country. He also said Lukoil would like to participate in bidding round for new oil contracts which is due early next year, but which has been postponed several times." (Dow Jones, "Iranian Oil Minister Meets With BP, Total and Lukoil," 11/26/14)

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“Russia's economy chief on Wednesday announced plans to visit Iran amid reports of the two sides nearing a mammoth oil-for-goods deal that has raised consternation in the United States. Economy Minister Alexei Ulyukayev told Russian media his late April trip would focus on a ‘wide range of trade and economic issues’ but provided no further details.Moscow's Kommersant business daily on January 16 said the two close trading partners were negotiating a barter agreement under which Russia could import up to 500,000 barrels of Iranian oil per day. Russian officials have neither confirmed nor denied the discussions…Other reported aspects of the proposed deal would see Russia's state-run energy behemoth Gazprom get access to natural gas deposits controlled by Iran in the Caspian Sea. Russia's private crude producer Lukoil also confirmed on Wednesday that it was in talks with the Iranian oil ministry about resuming work in its energy sector once the Western sanctions are removed.” (AFP, “Russian minister plans Iran trip amid oil deal reports,” 2/12/14)  

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“OAO Lukoil, Russia’s second-biggest oil producer, is in talks with Iran’s Oil Ministry about returning to the Islamic Republic to develop assets, Moscow’s envoy to Tehran said, according to Iran’s Mehr News Agency. Russian Ambassador Levan Dzhagaryan said Lukoil was ready to resume work in Iran’s oil and gas sector after economic sanctions are removed, state-run Mehr reported today. Moscow-based Lukoil abandoned its work in Iran in March 2010, citing pressure from U.S.-imposed economic sanctions…Lukoil Chief Executive Officer Vagit Alekperov said Nov. 29 that the company was ready to resume work in Iran after sanctions on its oil industry had been removed, Russia’s Interfax news agency reported at the time. A spokesman didn’t immediately respond to a request for comment today. Dzhagaryan also called for stronger cooperation between Iran and Russia on gas exploration in the Caspian Sea, Mehr reported. Lukoil was a minority partner in the Statoil ASA-led Anaran project and took a $63 million impairment in December 2009 due to the inability to invest in further development amid the threat of U.S. economic sanctions, according to its 2009 financial statements. Dzhagaryan was addressing reporters in a meeting with the head of Iran’s Chamber of Commerce when he made the comments, according to Mehr.” (Bloomberg, “Lukoil in Talks With Iran on Post-Sanctions Return, Mehr Says,” 2/8/14)

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"Iran will have a new, attractive investment model for oil contracts by September, its president and oil minister told some of the world's top oil executives here on Thursday, part of its drive to win back Western business. Iranian President Hassan Rouhani and Oil Minister Bijan Zanganeh said their new administration was keen to open up to Western investments and technology, executives who attended the meeting said. They also stressed the importance of fossil fuel, with global energy demand rising. ‘The fact that the president of Iran came to the meeting today... is clearly a sign that Iran wants to open up to international oil companies,’ said Paolo Scaroni, chief executive of Italy's Eni, who was at the meeting. ’It was an impressive presentation,’ said one of three further oil executives who were at the meeting and spoke with Reuters on condition of anonymity. ’They said they are working on a new model to work with investors and are happy to see us,’ he added. ‘They not only need money but technologies. They are happy to have consultations about how new contracts shall work. They want to decide on the model by September.’ ’The message was - look at us, our geological risks are minimal, reserves are huge, come and we will create competitive terms and you will be happy. Your return on investments will be acceptable,’ another executive said. Along with ENI, France's Total, Britain's BP , LUKoil and GazpromNeft from Russia, and several other companies were present.” (Reuters, “Iran lures oil majors with new contracts pledge,” 1/23/14)

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"Lukoil, Russia's No.2 oil producer, is ready to resume cooperation with Iran when international sanctions are lifted, Chief Executive Vagit Alekperov was quoted as saying on Friday…'After sanctions are lifted - definitely. We are interested in all regions where hydrocarbon reserves lie,' Alekperov told Interfax news agency in the city of Perm, answering a question about the possible lifting of sanctions on Iran…Alekperov, also a major shareholder in Lukoil, did not refer directly to any specific projects. A Lukoil spokesman declined further comment. Currently the company, which has a wide network of gas stations in the United States and was once co-owned by the U.S. oil major ConocoPhillips, has no projects in Iran. It pulled out of exploration work at Iran's Anaran block of fields and took a charge in its 2009 accounts as a result of the U.S.-led sanctions, and also halted supplies to Iran of oil refined products such as gasoline. Lukoil, facing falling oil production at its ageing Russian fields in West Siberia, plans to more than double foreign crude output next year after launching its giant West Qurna-2 field in Iraq. One of fields of the Anaran block, Azar, is a continuation of the Iraqi Badra field operated by Gazprom Neft, which had looked at a possible deal in Iran but failed to agree terms. A Gazprom Neft spokesman declined to comment." (Reuters, "Lukoil considers return to post-sanctions Iran - Ifax," 11/29/13)

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"Russian oil giant LUKOIL has resumed gasoline sales into Iran in partnership with China's state-run firm Zhuhai Zhenrong, even as the United States urges the international community to be tough with Tehran... Then sources familiar with the company said traders involved in gasoline trading with Iran at the Russian energy giant had received verbal direction from senior management to halt business activity. But LUKOIL's trading arm, Litasco, and Zhenrong discharged a 250,000-barrel gasoline cargo at the Iranian port of Bandar Abbas last week, industry sources said. Geneva-based Litasco was expected to ship a second cargo of the motor fuel to Bandar Abbas later this week, traders said. A LUKOIL spokesman said 'one-off deliveries (to Iran after it decided to stop the shipments in spring) took place within the frame of previously signed contracts.'" (Reuters,"Russia resumes gasoline sales to Iran," 8/11/10)

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In April 2010, Russian private oil giant Lukoil announced that it will stop gasoline shipments to Iran, as a result of pressure from US sanctions. Iran imports 40% of its gasoline due to a lack of refining capacity. (Ynet, "Russia's Lukoil to halt gasoline sales to Iran", 4/7/2010).

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"Russia's largest private crude producer LUKoil abandoned the Anaran oil project in Iran due to international sanctions, the company said on Wednesday. In its consolidated US GAAP financial accounts for 2009, posted on its website, LUKoil said its 'income before one-off impairment losses (including impairment loss for the Anaran project in Iran, which was abandoned due to international sanctions) reached $7,352 million.' Company vice president Leonid Fedun, earlier said further work on the oil field was impossible until U.S. sanctions were lifted.

The United States has imposed tough sanctions on international energy companies operating in Iran, including fines and other 'disincentives. 'The Anaran field, with estimated oil reserves of 2 billion barrels, was operated by a consortium of Norwegian StatoilHydro (75%) and LUKoil Overseas (25%)." (RIA Novosti, "Russia's LUKoil says Iran project dropped over sanctions," 3/24/10)

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"The enormous New York State Common Retirement Fund plans to divest $86.2 million in investments from nine companies doing business in Sudan and Iran...The decision comes after two years of reviewing these companies, the potential risk of the investments and, in some cases, humanitarian efforts in these countries.'We don't expect our investments to benefit regimes that support genocide and terrorism,' said DiNapoli. The fund plans to divest out of $86 million in Gazprom (OGZPY), Inpex (1605.TO), Lukoil (LUKOY), Oil And Natural Gas Corp (500312.BY), OMV (OMVKY), Petroleo Brasilia (PBR), Statoil (STO), Wartsila OYJ and Sinopec Corp. DiNapoli said the firms were chosen because 'they failed to respond or we were not satisfied with their responses' when asked to provide information to the fund on the investments and their risks." (Dow Jones Newswires, "NY Comptroller To Divest $86.2M In State Pension Fund Investments," 6/30/09)

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"New Jersey is poised to jettison $360 million worth of stock in 11 companies to comply with new state legislation that prohibits state investment in firms doing business with Iran, officers of the pension fund reported yesterday. The companies to be shed under the Iran prohibition are all international engineering or energy firms, including Lukoil and Gazprom, that have financial ties to the government of Iran." (The Star-Ledger, "State to shed $360M worth of stock in firms tied to Iran," 3/21/08)

No response at this time.