Bloomberg News

Rosneft, Lukoil May Share Oil, Gas Pipes Near Vankor

May 19, 2010

OAO Rosneft and OAO Lukoil, Russia’s two largest crude producers, may share pipelines to ship oil and gas from northern Siberia.

Rosneft may use Lukoil’s infrastructure to ship more than 5 billion cubic meters of gas a year pumped out at its Vankor field, the country’s biggest new oil development, starting in 2014, Vice President Peter O’Brien said during a conference call today. In return, the state-run producer may carry crude for Lukoil, O’Brien said.

Volumes of gas through the Lukoil link from the remote region will depend on the capacity allotted by OAO Gazprom, which owns the country’s trunk pipelines, he said.

Lukoil’s gas sales from the neighboring Nakhodkinskoye gas field slumped 29 percent to 5.94 billion cubic meters last year after Gazprom cut the volumes it purchased, the Moscow-based company said in a March 24 statement.

Rosneft boosted gas output 2.4 percent last year to 12.7 billion cubic meters of gas. In the first quarter of 2010, output of the fuel fell 2.4 percent to 3.27 billion cubic meters from a year earlier, according to the company’s website. Crude output rose 8.4 percent to 2.29 million barrels a day in the period, after the start of production at Vankor last year.

To contact the reporter on this story: Stephen Bierman in Moscow at sbierman1@bloomberg.net

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net


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