23 Dec 2011 15:41

Lukoil-Perm to increase investment by 18% in 2012

PERM. Dec 23 (Interfax) - LLC Lukoil-Perm plans to increase investment in 2012 by 17.6% to 20 billion rubles in comparison with this year, the company's general director, Alexander Leifrid, told Interfax.

He said that the bulk of the funds will go towards into production and exploration drilling. Total trilling in 2012 should come to 250,000 meters compared to 180,000 meters planned for this year.

In addition, the funds in the investment program will go to the company's program for moving to 95% utilization of associated oilgas by the end of 2012. Lukoil-Perm currently utilizes around 70% of its oilgas, Leifrid said.

Furthermore, funds will go to the costs of reconstructing exhausted facilities in 2012.

Leifrid also said that Lukoil-Perm plans to produce 13.15 million tonnes of oil in 2012 compared to 12.63 million tonnes this year (an increase of 4.1%).

In addition, Lukoil-Perm plans to commission the Kondasskoye field next year, which is located outside of the Verkhnekamskoye potassium and magnesium salt field in the Perm Territory. According to preliminary findings, the field's C1 and C2 reserves come to 27 million tonnes of oil.

The Lukoil-Perm Group owns 123 licenses for subsoil use with the goal of searching for, discovering and producing hydrocarbons. There are currently 133 operating fields in the Perm territory. Remaining recoverable oil reserves total 466.5 million tonnes. Lukoil-Perm Group includes LLC Lukoil-Perm, subsidiary LLC UralOil, LLC Aksaitovneft and joint ventures CJSC PermTOTIneft and CJSC Kama-Oil.