Russia’s Lukoil to sell all gas to Gazprom - newspaper

January 23, 2014

Russia's privately-owned Lukoil has pledged to continue selling all its gas production to export monopoly Gazprom and will not follow Novatek or Rosneft in seeking independent outlets, Russian newspaper Vedomosti reported on January 22, quoting industry sources, Itar-Tass said.

The two current partners were preparing a new agreement on strategic cooperation, the newspaper said, noting that the document was to be signed by the end of March, on expiry of the current accord, signed in March 2005.

Gazprom chairman Alexey Miller and Lukoil President Vagit Alekperov were reported to have discussed the deal a week ago, proposing an arrangement running 5-10 years.

The accord may change prices and increase supplies, and once Lukoil starts developing Caspian fields, it will also sell its share of this gas to Gazprom, the paper says, noting that the 2005 deal provided for the companies’ joint exploration and development of fields in Yamalo-Nenets autonomous territory, Nenets autonomous territory and regions including the Caspian and Uzbekistan.

Copyright: Itar-Tass, 2014