CEO says Lukoil not to partake in auction for Erginskoye field

MOSCOW, Jun 21 (PRIME) -- Russian oil major Lukoil will not participate in an auction for the Erginskoye oil field due to its low economic efficiency, CEO Vagit Alekperov told reporters on Wednesday.

“Our geologists looked at the field -- its economy plus price expectations led us to believe that it wouldn’t be economically efficient for us. We decided not to freeze the down payment. There was no political pressure,” Alekperov said.

The auction will take place on July 12 with a starting payment standing at 7.4 billion rubles. The field’s recoverable oil reserves amount to 18.842 million tonnes under the C1 category and to 83.877 million tonnes under the C2 category.

On June 16, Natural Resources and Environment Minister Sergei Donskoi said that oil major Rosneft, its subsidiary RN-Uvatneftegaz, Gazpromneft-Khantos – an affiliate of oil company Gazprom Neft, and company PionerGeo had bid at the auction for the Erginskoye oilfield and had transferred a down payment in the amount of the starting payment.

(58.5786 rubles – U.S. $1)

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