Lukoil to keep output steady with new projects outside Russia: CEO

Lukoil plans to keep pumping 100 million tons of oil per year between 2018 and 2027 with projects outside Russia and will keep annual investment at $8 billion-$8.5 billion, the chief executive said on Sept. 23.

Lukoil, Russia's No.2 oil producer which has suffered from sluggish output from its Western Siberia fields, has kept production steady by focusing on growth in new regions, such as the Caspian Sea and Iraq. It is also looking at Iran and Mexico.

Lukoil Chief Executive Vagit Alekperov announced details of company's 2018-2027 strategy to reporters at the launch of the firm's gas facilities in Uzbekistan. He said details would be discussed by the board in December.

Under the new strategy, Lukoil planned to add 1.1 billion-1.2 billion tons of hydrocarbon to reserves while its gas output would reach to 35-40 billion cubic meters (bcm) per year by 2027, he said.

The 2018-2020 budget would be based on an oil price of $50 per barrel and a ruble rate of 62-64 rubles to the dollar, said Alekperov, who is also a major Lukoil shareholder.

Keeping retail net in Turkey

Lukoil, a big oil products importer on the European market, would continue working on European projects and would keep its retail net in Turkey, the CEO said, despite new U.S. sanctions imposed on Moscow this year.

Regarding other projects, Alekperov said he would meet Iranian oil minister Bijan Zanganeh in Moscow on Oct. 3. Tehran has said earlier it expected to sign deals in the next five to six months with Russian firms, such as Lukoil, on developing of Iranian oil and gas resources.

Lukoil has been in talks with the National Iranian Oil Company (NIOC) on taking part in development of the Abe Timur and Mansuri...