Lukoil could boost hydrocarbons output 50% by 2021
LONDON. March 14 (Interfax) - Lukoil could boost hydrocarbons output 50% by 2012 to 1.17 billion barrels oil equivalent, the Russian oil major said in its 2012-2021 Strategic Development Program, which it unveiled in London on March 14.
"By 2021, Lukoil is planning to increase its hydrocarbon production levels by 50% compared with 2011, thus reaching 1.17 billion BOE, while 17% of the output is expected to come from the Company's international projects," Lukoil said in the presentation.
"The Program provides for hydrocarbon extraction over a 10-year period (2012-2021) amounting to 10 billion barrels of oil equivalent (BOE), with the average annual hydrocarbon extraction increment rate exceeding 3.5%," it said.
"A strategic goal is to raise the oil recovery factor to 40%," Lukoil said.
Lukoil's president, Vagit Alekperov, said during the presentation that the company planned by 2021 to be producing 3 million-3.2 million barrels oil equivalent per day, of which 2.3 million barrels oil. Average annual growth for oil will be around 2.3%, he said. New projects will account for around 40% of hydrocarbons production, he said.
"The CAPEX program is planned to exceed $150 billion by 2021, while about 16% of the funds are to be allocated to the Refining & Marketing business segment," Lukoil said in the presentation.
"The gas share of the Company's overall hydrocarbon extraction is expected to reach 27% by 2021. The company intends to reach the target associated petroleum gas utilization level of 95% by the end of 2014," it said.
"The Company also intends to enhance the refining quality and increase the conversion rate; the Russian refineries of the Group intend to increase the yield of light petroleum products to 72% by 2021. The Company plans to increase the daily average sales volume at the Russian filling stations of the Group by 27%."
"An increase in the production and economic efficiency along with sustainable development of the company are considered primary objectives of the company's 2012-2021 Strategic Development Program," Lukoil said.
"The new program focuses on increasing the investment appeal and a dramatic growth of payments to shareholders. Thus, the dividend payments are expected to increase by 25% in 2012 y-o-y. In the foreseeable future, the growth of dividend payments may be many-fold compared with those in 2011. The growth of dividend payments will be covered by the growing cash flows due to the great appeal of investment projects," it said.