LUKoil takes on Marathon Russian fields and moves into Uzbekistan

LUKoil has bought nine oil fields in the Khanty-Mansiisk (in the Tyumen field) autonomous district in W Siberia from US giant Marathon for US $787 Mn. which Marathon bought 3 years ago for US$275

Clarence P. Cazalot, Jr., Marathon president and CEO. "We have elected to monetize the value of these particular assets, while continuing to evaluate other attractive opportunities in the Russian Federation." Marathon have of course re-started in Libya and have just announced the first crude liftings.

LUKoil intends to boost production by 2.5 times from the current 26,000 barrels per day

LUKoil said the total recoverable reserves purchased were 257 million tons in ABC1+C2 Russian categories, or around 1.88 billion barrels = to 10% of LUKoils stated reserves of 16 Bn barrels. (Bigger than Marathons's estimates of 250 Mn barrels in proven and probable reserves.)

The figure is much bigger than Marathon's own estimates. It has said that, under international standards, the assets have around 250 million barrels in proved and probable reserves.

By LUKoil's calculation, the deal would add more than 10 percent to its total oil reserves of over 16 billion barrels.

Bank UralSib noted that the sale came after the Natural Resources Ministry warned Marathon it could lose seven of its nine oil field licenses if it did not produce as much oil as stipulated by the license agreement.

LUKoil said the development of new assets would provide significant synergies due to a joint use of infrastructure with LUKoil's other assets in the area.

"The present value of the synergies to be achieved is estimated at over $100 million," LUKoil said.

Meanwhile in Tashkent,Vagit Alekperov, Lukoil President , said on Tuesday during opening of the 10th International exhibition Oil and Gas Uzbekistan that , "Our company is proud of being one of the first companies to get an opportunity to work in Uzbekistan," "The Uzbek government's balanced and well-considered economic policy is convenient for us. We will soon have staff comprising many thousands engaged in oil and gas extraction in Uzbekistan".