MOSCOW (MRC) -- OAO Lukoil Holdings, Russia's No. 2 oil producer, will invest USD1 billion in the oil firm Samara-Nafta to increase production, reported The Wall Street Journal with reference to Russian news agencies.
Lukoil acquired Samara-Nafta from Hess Corp. this month for USD2 billion as part of a strategy to stabilize and increase oil production. Lukoil has for years fought declining output at its main, Soviet-era fields in Western Siberia.
The investment in Samara-Nafta will increase production by between 5% and 7% over the next five years from 2.5 million tonnes a year, Prime news agency cited the company as saying.
As MRC informed previously, Lukoil's revenue for the full year 2012 increased 4.1% to USD139.2 billion from USD133.7 billion, on the back of higher oil prices. Earnings before interest, taxation, depreciation and amortization, or EBIDTA, rose 1.7% to USD18.9 billion from USD18.6 billion. Net profit for the year was up 6.2% on 2011 at USD11.0 billion.
We remind that in early March 2013, Lukoil started construction of combined cycle gas turbine unit (CCGT) at the regional industrial park, located in the immediate vicinity of Stavrolen, which had earlier resumed production of polyethylene (PE) and polypropylene (PP) after a short outage for maintenance.
OAO Lukoil Holdings is one of the leading vertically integrated oil companies in Russia. The main activities of the company include exploration and development of oil and gas, manufacturing and marketing of petroleum products.