GAZPROM & LUKOIL: STRATEGIC PARTNERSHIP

Alexey Miller, Chairman of the Gazprom Management Committee and Vagit Alekperov, President of LUKOIL have signed a general agreement on strategic partnership between the companies over 2014 to 2024 as part of the St. Petersburg International Economic Forum 2014.

Joint oil and gas projects

According to the document, the parties will look into the possibilities of joint projects for hydrocarbons prospecting, development, production, treatment and transmission within the Nenets and Yamal-Nenets Autonomous Areas, the Russian continental shelf, in the Caspian Sea, Eastern Siberia and the Far East as well as other regions that may be determined additionally.

The parties also intend to co-operate within hydrocarbons development and production projects beyond Russia.

Gazprom and LUKOIL plan to co-ordinate their exploration activities and exchange the obtained data. They will also work out the issue of unifying the information storage standards.

Oil and gas condensate marine shipments

The companies are also going to develop the co-operation in oil and gas condensate marine shipments from the northern areas of the Nenets and Yamal-Nenets Autonomous Areas. In addition, the parties will collaborate in pumping of natural gas produced by LUKOIL via Gazprom's gas transmission system and in using LUKOIL's transport and loading facilities for shipping Gazprom's oil.

Gazprom and LUKOIL will pursue the existing partnership relations in supplying hydrocarbon feedstock and producing petrochemicals as well as allocating spare oil and gas condensate resources at gas and oil processing plants both in Russia and abroad.

"We go on developing our mutually beneficial strategic cooperation with LUKOIL. Further implementation of the ongoing projects and creation of new ones will substantially increase the economic potential of our companies," said Alexey Miller.

"The actual results of the longstanding cooperation between LUKOIL and Gazprom prove its efficiency for the businesses of both companies. The Agreement on Strategic Partnership over 2014 to 2024 opens up new prospects for us," said Vagit Alekperov.

energyglobal.com