Agreement outlines alternatives and forms of cooperation in the area of transportation of LUKOIL’s  associated and natural gas via Gazprom transportation network

OAO LUKOIL and OAO Gazprom signed General strategic partnership agreement at Gazprom headquarters in Moscow today. The Agreement was signed by Gazprom Chairman Alexei Miller and LUKOIL President Vagit Alekperov.

The agreement provides for mutually beneficial development of cooperation in the area of exploration, production, transportation and refining of oil and gas, distribution of oil and gas and oil and gas products, chemicals and petrochemicals, generation and distribution of electrical and thermal energy, manufacturing of oil and gas and energy equipment, other engineering products, development of production facilities and infrastructure in the above kinds of activity as well as scientific and technical, information, environmental, social and personnel development.

Under the terms of the Agreement, the companies agreed to jointly carry out projects related to exploration and development of oil and gas fields within Yamal-Nenets and Nenets Autonomous Territories and the Russian sector of the Caspian Sea. The arrangements provide for joint participation in tenders and auctions to obtain licenses to develop subsoil in these regions. It is also planned to develop cooperation in the area of transportation of oil and gas condensate from the northern regions of Nenets Autonomous and Yamal-Nenets Territories.

The companies agreed to promote partnership between their subsidiaries through general coordination of their activities in terms of utilization of their production capacities, processing and distribution of products.

OAO Gazprom and OAO LUKOIL plan to enhance their cooperation in the area of rationalized utilization of LPG, associated gas and natural gas as an alternative fuel and for the purpose of production of modern polymers.

The parties expressed their intention to promote their partnership in hydrocarbon exploration and production outside the Russian Federation. The agreement also includes the companies’ intentions to coordinate their foreign economic activities, scientific research programs in the area of oil and gas production, environmental projects and other types of activities.

“Today’s event can be called a historic one without any exaggeration. All speculations related to Gazprom’s unwillingness to give access to independent producers to the gas transportation system are left behind. Integration of two major companies’ efforts will be a visible contribution to the development of the real sector of Russia’s economy what, in our opinion, will meet our shareholders’ interests,” said Vagit Alekperov at the signing ceremony.

“We repeatedly proclaimed our readiness to reach an agreement on mutually beneficial terms with any suppliers of hydrocarbons. Gazprom always keeps its word. By our agreement with LUKOIL we create a basis for Gazprom’s partnership with independent gas producers in the environment of liberalization of gas prices on the Russian gas market,” said Gazprom Chairman of the Board Alexei Miller.

To develop and implement programs and projects under the General agreement the companies agreed to create a working team which will be acting on a permanent basis.

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