8 April, 1998. - Moscow Mayor Yuri Luzhkov, Tatar President Mintimer Shaimiyev, LUKOIL President Vagit Alekperov, Tatneft Oil Company Director General Rinat Galeyev and Central Fuel Company Board Chairman Yuri Shafranik signed a general cooperation agreement in Moscow today.

The goal of the agreement is economic integration in oil prospecting, production, transportation and processing, oil, petroleum product and petrochemical product sales, manufacture of oil field and other equipment, expansion of the production capacity and infrastructure, scientific research, information exchange, environment protection, tackling social issues and personnel hiring and training.

The parties to the agreement will take part in the prospecting for oil and oil field development inside and outside the Russian Federation. The oil companies will bid for licenses for the use of mineral resources in promising areas and set up enterprises involving all the parties and other interested companies.

The parties will coordinate the shipment of oil to refineries inside and outside the Russian Federation to serve their mutual interests and commitments depending on the capacity and efficiency of regional product markets.

LUKOIL and Tatneft will supply agreed amounts of oil for refining and selling under specific contracts to the Central Fuel Company - the Moscow Oil Refinery.

The parties will cooperate in the formation of petroleum product markets in both traditional and new areas inside the Russian Federation, notably Moscow region and Tatarstan, and outside the country.

The parties may jointly share or represent the interests of other parties in privatization tenders in which stakes of Russian and other enterprises are sold. The Central Fuel Company will also act on behalf of the parties in tenders and specialized auctions. The parties will set up new financial-and-industrial groups and other economic structures for the implementation of joint projects.

In line with the agreement, the parties will set up an Association of Russia's Oil Companies to protect the property, legal, social and other interests of the Russian oil industry and its employees.

The parties think that mutually beneficial long-term cooperation will enable them to merge and use jointly their production, financial, scientific and labor resources so as to step up the economic potential of every party. Other companies and regions may join the agreement.

 

 

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