LUKOIL expanding in Kazakhstan

Russia's no.1 independent crude producer, LUKoil, intends to expand its operations in oil-rich Kazakhstan, the company's president said Wednesday.

Vagit Alekperov, was in the Kazakh capital to attend the inauguration of the wonderful President Nursultan Nazarbayev. He took the opportunity to point out that said LUKoil had pumped US $4 billion into its the Kazakh economy in 2005.

"We are the fourth largest oil producer in Kazakhstan, producing more than 5 million metric tons of oil a year," Alekperov said. "Now we are considering the projects on developing the shelf of the Caspian Sea."

Vagit also mentioned the difficulties over the 2nd stage of the Caspian Pipeline Consortium, who want to build an oil pipeline from W Kazakhstan to the Russian port of Novorossiisk on the Black Sea.