29 Jun 2010 15:19

Heads of Lukoil and BP discuss future partnership inside and outside of Russia

MOSCOW. June 29 (Interfax) - Lukoil President Vagit Alekperov and BP CEO Tony Hayward met in Moscow on June 28 at the Russian company's headquarters to discuss possibilities of future partnership inside and outside of Russia, Lukoil said in a press release.

In addition, special attention was paid the oil spill in the Gulf of Mexico.

Alekperov said that BP's experience from liquidating the accident and its outcome should be considered an asset in the international oil community so that similar incidents in the future are prevented.

BP and Lukoil currently do not have any joint projects in Russia. The companies are participants in a project for development the Shah-Deniz field in Azerbaijan, which has attracted the interest of Gazprom . The participants in the project are BP (the operator with 25.5%), Statoil (25.5%), State Oil Company of Azerbaijan (SOCAR) (10%), Lukoil (10%), NICO (10%), Total (10%) and TPAO (9%).

Lukoil purchased BP's stake in the Caspian Pipeline Consortium (CPC) last year. Lukoil became the 100% owner in LukArco joint venture having purchased 46% from BP in the JV for $1.6 billion. According to project agreements, Lukoil immediately paid only $300 million. The remainder should be paid no later than two years following the acquisition.

LukArco owns 5% in TengizChevrOil, which is developing the Tengiz field in Kazakhstan, as well as 12.5% in CPC.

Lukoil recently announced that it has no plans to acquire down-stream assets (refineries or wholesale enterprises).

The company is focusing on geological exploration and field development. The company's main projects are development of fields in the Caspian, Iraq, West Africa and Northern Russia.

Hayward also met with Russian Deputy Prime Minister Igor Sechin and Energy Minister Sergei Shmatko in Moscow on June 28-29. The meeting was held at Rosneft's officer (Sechin is the company's board chairman). Rosneft President Sergei Bogdanchikov also participated in the meeting along with TNK-BP's Executive Director German Khan.

BP said that Hayward confirmed at this meeting that the company has no plans to sell Russian assets.

Gazprom told Interfax that Hayward did not meet with the gas concern's top management. On Friday, Gazprom CEO Alexei Miller said that he would meet Hayward with pleasure but had vacation plans.