A traveling meeting of the Lukoil Board of Directors was held in Burgas (Bulgaria) on April 24 to make decisions regarding the 2014 Annual General Shareholders Meeting, Lukoil’s press office has said.
It was resolved that the Annual General Shareholders Meeting will be held at 11:00 a.m. on 26 June 2014. The Board of Directors is going to recommend that the Annual General Shareholders Meeting resolve to pay dividends for the 2013 financial year, which may in total be 110 roubles per ordinary share, in the amount of 60 roubles per ordinary share (the interim dividends paid out earlier for the first six months of 2013 financial year were 50 roubles per ordinary share).
Thus, the total dividend amount payable for the 2013 financial year, including interim dividends distributed in October 2013, is expected to be 22.2% higher compared with the previous dividend amount (90 rubles for 2012).
The Board of Directors has also taken into consideration the information submitted by Lukoil Vice-President, President of Lukoil Overseas Holding GmbH Andrey Kuzyaev, regarding the commissioning of the West Qurna-2 field and new promising projects in the Republic of Iraq.
As previously reported, the first oil at the West Qurna-2 field was produced on 5 March 2014, while a daily oil production rate of 120,000 barrels was reached on 28 March 2014. The West Qurna-2 field includes two major oil and gas formations, Mishrif and Yamama. The field’s total initial oil-in place comes to around 35 billion barrels.
The West Qurna-2 project will include four phases: Geologic Exploration, Early Oil, Mishrif Full Field Development, and Yamama Formation Development. Successful implementation of the Early Oil phase is a critical success factor for the whole project and a guarantee of its target profitability and return on investments. According to an estimate of Independent Project Analysis, an international organization, project-related investments are comparable with the industry average indicators, while in terms of the implementation rate it surpasses similar global projects by more than 20% and is rated among the top 10% in the peer project group.
On 10 April 2014, Lukoil started 2D seismic surveys at Block 10 in southern Iraq. The compulsory geologic exploration program for Block 10 provides for 5 years with the possibility of a 2-year prolongation and, in addition to 2D-seismics, provides for the drilling of one prospecting well, scheduled to be drilled in the first quarter of 2016.
A Memorandum of Understanding with the Iraqi state-owned Oil Exploration Company was signed on 4 April 2014 in Baghdad. The Memorandum provides for the possibility of geologic exploration at the Western Euphrates Block with an area of 17,000 square kilometers. Currently, appraisal is under way at the Block, and the appraisal outcomes will be taken into consideration when deciding whether to begin contract preparation. OAO “Zarubezhneft” will act as Lukoil’s partner on the part of Russia.
Lukoil is also considering the option of joining into a partnership with OAO “Zarubezhneft” to enter the bidding procedure for the Nassiriya integrated project providing for