Lukoil Overseas Holding Ltd., a wholly-owned subsidiary of Russian oil giant Lukoil, has decided to sell off its stake in an oil and gas exploration project in Morocco, which was found non-perspective. Lukoil still holds exploration and development licenses in Egypt, Tunisia and Columbia.
Lukoil’s Moroccan exploration license was previously owned by Canada’s Vanguard oil company, which was acquired by its competitor Bitech Petroleum Corporation. Following the purchase of Bitech by Lukoil less than a year ago, the Russian group decided to depose of Bitech’s Moroccan unit as part of an asset-restructuring scheme in the newly-acquired firm.
A Lukoil statement explained that “Based on the results of an economic analysis conducted, the deposits in Sakhalin and Morocco were recognized as economically ineffective and their further development could have had an adversary affect on Company’s financial activity and investment appeal.”
“That is why the Board has decided to stop the development of Dzhimdan block in Sakhalin, Fez Nord, Volubilis Est and Oued Sebou Quest blocks in Morocco. The future of the sea block Chebba Marin in Tunisia will be discussed later,” the statement concluded.
The company considers Egypt’s Western Esh Al-Malahha block “highly prospective” and the most effective project in terms of profitability and production growth. Lukoil expects that recent discoveries made in Egypt may increase production level up to 7,000 barrels per day this year, which is the highest figure for the international companies working in Egypt. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
