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(Lukoil) -- The OAO Lukoil Board of
Directors held a meeting in Moscow today to approve the Lukoil Group Strategic
Development Program for 2012-2021. According to the Program, the key objective
of the Company for the period is to reach the dynamics of sustainable production
growth. The average annual growth rate of hydrocarbon production over the next
ten years is expected to be at least 3.5%. The major part of the production
increment is expected to come from the Company’s promising projects in Iraq,
Central Asia, the Caspian Sea and the Yamal-Nenets Autonomous District.
Production will also continue to grow in the traditional regions due to a
significantly greater amount of reserves involved in development. Hydrocarbon
production will be completely compensated for by an increment in reserves due to
a higher oil recovery factor resulting from broad application of
state-of-the-art field exploration and development
technologies.
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The Program pays special attention to ensuring a balance between the
free cash allocated for development purposes (implementation of investment
projects), on the one hand, and for shareholder payments, on the other. As a
result, the Company’s free-cash flow in the coming decade will increase
significantly, while shareholder value will grow several times
over.
The new strategy will be presented to the financial and
investment community in the first quarter of 2012.
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LUKOIL Group’s investment costs for 2012-2014 are expected to be
approximately USD 48 billion, including USD 13.9 billion in 2012. These
investments will be used to create groundwork for the Company’s consistent and
sustainable production growth in the coming decade. In particular, large
production projects in Iraq (West Qurna-2), in the Caspian Sea (Filanovsky
field), in West Siberia (Pyakyakhinskoye field), in Uzbekistan (the Kandym group
of fields) and a number of other projects will be launched.
mrcplast.com
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