04 February 2004 10:12
Lukoil to exploit gas in Saudi Arabia
Lukoil (Russia), oil concern, will be the first Russian firm to exploit natural gas in Saudi Arabia from 2004. The
company won the licence in a tender of the Saudi ministry for oil and natural resources. Saudi Arabia, the world's
largest oil producing country, has the fourth biggest natural gas deposits in the world. So far it has been exploiting
198 mil cu mt/d of gas. By 2010 it wants to double the production with the help of foreign investors who will
participate in the development of the local gas sector. Lukoil will operate on 30,000 s km of the deposit Rub al-Khali,
which has a total area of about 120,000 s km. It has been awarded rights for the utlization of the deposit for five
years. Its partner for the project will be Aramco (Saudi Arabia). The two firms will set up a joint venture, which will
have an 80% share held by Lukoil and 20% owned by Aramco. Lukoil plans to invest around USD 200 mil in the project. The
final agreement will be signed in Mar 2004. Rights to exploit gas in other parts of the Rub al-Khali deposit have been
won by Sinopec (China) and a consortium of ENI (Italy) and Repsol (Spain). These firms will set up joint ventures with
Aramco too.
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