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Lukoil

Lukoil

Industry: 
Energy
Symbol: 
LON:LKOH
States: 
NJ
NY
PA
Country: 
Russia
Contact Information: 
Sources: 

"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)

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