A Joint Venture Creation
LUKOIL and ConocoPhillips Announce Joint Venture
LUKOIL and ConocoPhillips have finalized the creation of the OOO Naryanmarneftegaz joint venture to develop resources in Timan-Pechora hydrocarbon province in the northwest of Russia. ConocoPhillips has a 30 percent interest in the joint venture. The amount of the transaction involving acquisition of this interest is approximately US$500 million. The companies will govern the joint venture 50/50.
Production from the joint-venture fields is expected to be transported via pipeline to LUKOIL's existing terminal at Varandey Bay on the Barents Sea (Nenets autonomous district) and then shipped via tanker to international markets.
The Naryanmarneftegaz joint venture is part of a larger strategic alliance between ConocoPhillips and LUKOIL that was formed on Sept. 29, 2004.