SOURCE: FLICKR/PERETZP (CC BY-SA 2.0)
26 October 2020
LUKOIL FREEZES CRUDE PROJECTS OVER LOW OIL PRICES The situation on the global oil market has taken its toll on crude projects, also in Russia. As there are huge crude stocks whilst oil price is stable at roughly $40 per barrel, oil output is little profitable and so is looking for new fields. The CEO of Lukoil Vagit Alekperov said that the low oil price resulted in a sharp decline in the number of new oil projects, a situation that forced his firm to end some of them, too.
L
ukoil has frozen a total of $1.5 billion in crude projects. Alekperov noted that if the stagnation period went further on, his company would review crude projects to assess whether to prevent any. According to the CEO of Lukoil, among halted projected were those being less
www.warsawinstitute.org
profitable, either due to depleted fields or amid considerable distance one from another. The situation looks different for Lukoil’s Caspian oilfields. Alekperov yet assured that OPEC+ cuts did by no means affect the company’s drilling works. Lukoil prioritizes some projects
23
