Lukoil Prepares for Battle with New Giant

Such a merger of giants like Yukos and Sibneft without a doubt attracts the attention of not only Russian society but the world community, said Lukoil President Vagit Alekperov at a press conference on Friday in Salekhard (Yamalo-Nenetsky autonomous district). 'Such projects sharply raise the capitalization of private property, and make for attractive investment in Russia. We are closely following this process: a large company is being born - our competitor, and we are preparing for battle,' Alekperov said.

A spokesperson in the press service for the Yamalo-Nenetsky district governor told Rosbalt that Vagit Alekperov arrived in Salekhard to discuss with regional head Yuri Neyelov questions about the future activity of the company on the territory of the district. Lukoil is orienting on the development of the Yamal peninsula, Alekperov said. According to an agreement signed with Gazprom in April, the company intends to seriously exploit the Nakhodkinsky hydrocarbon field.

He said the biggest problem - where to deliver the gas and for what price - was already decided because according to the April agreement with Gazprom from the fourth quarter of 2005 Gazprom will buy from Lukoil gas at a price of not less than USD 22.5 for 1,000 cubic meters which allows them to make the project profitable. On Friday at the Nakhodkinsky hydrocarbon field, groups and squares are being developed and a tender is being conducted for the delivery of pipes. In all, 60 drills will be installed for exploitation at the Nakhodkinsky field.

© &to=http://www.rosbaltnews.com/' target=_blank>RosBalt

&to=http://www.sibneft.ru' target=_blank>SIBNEFT

&to=http://www.yukos.com' target=_blank>YUKOS

&to=http://www.lukoil.com' target=_blank>LUKoil