Lukoil in licence cash plan

By Vladimir Afanasiev

 03 January 2013 23:59 GMT

Russian oil company Lukoil has committed almost $1.7 billion to win the exploration and development licence for the Imilorskoye block in the Khanty-Mansiysk region.

Lukoil will pay almost double the original price set by the auction organiser, subsurface agency Rosnedra, after beating two other contenders — subsidiaries of Rosneft and Gazpromneft.

However, Lukoil said it paid about $1.20 per barrel of discovered and confirmed oil reserves, which was roughly in line with the price of such assets in earlier deals in Russia.

The block is estimated to contain about 1.4 billion barrels of recoverable oil, spread among three known fields.

Lukoil said that, under the licence terms, it is committed to process about 30% of oil to be…

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