Tue, Oct 15, 2013 - Page 15 News List

OAO Lukoil looking to expand its Asian business, CEO says

AP, BEIJING

OAO Lukoil chief executive officer Vagit Alekperov yesterday said the oil giant is looking for Chinese partners as it tries to expand its business in East Asia.

Alekperov said he would meet this week with Chinese state-owned oil giants to discuss areas for cooperation.

The company has production ventures abroad with China’s two biggest oil companies, PetroChina Ltd (中國石油天然氣) and Sinopec Corp (中國石油化學).

OAO Lukoil, Russia’s second-largest oil producer, wants to increase exports of crude oil and refined products such as lubricants to China and other East Asian markets, Alekperov said.

“Our main aim is to expand exports of our oil and gas products to China,” Alekperov told reporters.

However, “We do not have a detailed plan yet,” he said.

China is the world’s fastest-growing energy market. US government data show it overtook the US last month as the world’s biggest oil importer, driven by rising auto ownership and strong economic growth.

Other Russian energy companies operate two pipelines to move oil to China and one to deliver gas, but further development has been slowed by lack of agreement on prices and other disputes.

Alekperov said Lukoil also wants closer collaboration with Chinese partners abroad.

He said his company wanted a Chinese partner to help develop an oilfield in Iraq, but failed to find one.

Alekperov ranked fifth on Forbes magazine’s list of the wealthiest Russian businesspeople this year with a net worth of US$14.8 billion.

Lukoil, which has shares traded on the London Stock Exchange, has said it also wants a listing in Hong Kong, but Alekperov said that was delayed by regulatory hurdles.

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