LUKOIL SUBMITS PROPOSALS OF SOCAR
According to him, the current form for which the project has to be realized is impossible for LUKoil. The company, just like any other company, be it American, Japanese, British, etc, first of all considers making profit in the development and the rehabilitation of the oil deposits, stressed Mr Bagmanov.
"Our proposals mainly concern issues that will allow the two sides effectively work on this project," he said. Meanwhile, concerning the possibility of increasing the share of LUKoil in the Govsany-Zykh project, he said that this variant could be considered as one of the possible ways of increasing the effectiveness of the project.
It may be recalled that the contract for the Govsany-Zykh project has still not come into effect because of some unsolved issues connected with the ecology and environmental protection. According to the assessments of specialists, the Russian company would need to spend about USD100 million only on carrying out obligatory ecological programmes envisaged in the contract. Investing such a huge amount only in ecological projects could lead to a zero or negative profitability of the project, which is expected to cost USD250 million.
The shares of this contract have been divided as follows: SOCAR - 50%, LUKoil - 50% (operator). The total area of the contracted site is 128 sq. km and the volume of residual reserves of oil is up to 20 million tonnes.
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