[People forget that Russia is one of the world”s largest oil producers and will make billions out of the rise in world oil prices. The Russians and Chinese are skulking around Africa quite a bit these days it seems. Jan]

President Olusegun Oba-sanjo”s drive for direct foreign investment in the country has received a major boost with the recent indication of interest by the worlde(131)ƒ(194)Â(173)­s second largest oil company, Russia”s Lukoil to invest in the country”s upstream and downstream oil sector.

Lukoil”s interest in the country”s oil industry and preparedness to make appreciable investment presence is already manifesting in its recent bid for oil block in the just concluded 2005 bid round.

The Russian company has already indicated interest and is leading a consortium of International and Indigenous Investors to acquire and turn around the 210,000 barrels per day capacity Port Harcourt refinery that has already been slated for privatization by the Federal Government.

Already, the oil company, which is working closely with a well resourced indigenous group actively involved in the downstream sector of Nigeria”s oil and gas industry including marine tanker transportation and petroleum products trade a well-established Nigerian Group is also hoping to introduce one of its subsidiaries Hitech. The subsidiary is entering the country”s oil industry to participate in such areas as designing, installation, building and maintenance of oil pipelines across the country.

ThisDay gathered that the oil company”s interest in the country”s oil sector is informed by what it believes are fresh investment opportunities brought about by the on-going economic reform package and more importantly the liberalization of the oil sector ushered in by the Obasanjo-led administration.

In Russia, Lukoil is the leading vertically integrated oil and gas company whose main activities center around oil and gas exploration and production, refining and sale of petroleum products.

By proven reserves, Lukoil is the second largest oil company in the world and has about 1.5 per cent of global oil reserves and another 2.1 per cent of global oil production. It dominates the Russian energy sector with 19 per cent of that country”s oil production and an equal percentage of total oil refining capacity.

Last year, its proven reserves were estimated ar 15,977million bbl of crude oil and 24,473 bcf of natural gas, totaling 20,056million boe.

In terms of production assets, its main production flows from such key operation areas as West Siberia that holds 54 per cent of its reserve and Perm Oblast. It is also the only Russian oil company with significant hydrocarbon reserves in two new oil oil and gas provinces Timan-Pechora and Northern Cas-pian. Lukoil is also aiming for a rapid launch of production at fields located in these areas in the next few years to assure successful long term growth.

At the international level, the company is currently carrying out exploration and production projects in Azer-baijan, Kazakhstan, Egypt, North Africa and Columbia in South America.

In the downstream oil sector, Lukoil owns significant oil refining capacity both in Russia and abroad. It owns four large capacity refineries in Perm,Volgograd, Ukhta and Nizhny Novgorod.

At an aggregate estimate, Lukoil”s refineries have facilities capacity of about 40.8million tones yearly, this is apart from other refineries that it owns in Ukraine, Bulgaria and Romania with a combined capacity of about 17.8million tones per year.

Lukoile(131)ƒ(194)Â(173)­s 2003 performance records show that 42.3million tonnes of crude oil; an additional 34.3million tonnes were refined by its refineries alone in Russia.

The advantage the oil company brings into the country”s oil sector is its subsidiary.

Hitech-Lukoil whose expertise and vast experience is expected to highly benefit the country through the creation of job opportunities, developmen manpower and improve the economy.

Source: AllAfrica.Com
URL: http://allafrica.com/stories/200507111423.htm…br>