Lukoil pays $1.66bn in Siberia oilfield auction

Lukoil bid: Company offered $1.66bn in West Siberia auction

Lukoil

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News Wires

 26 December 2012 21:45 GMT

Russia's second-largest crude producer Lukoil has emerged as the winner in West Siberia oilfields auction, offering a highest bid of 50.8 billion roubles ($1.66 billion), the Rosnedra licensing agency said on Tuesday.

The acquisition will allow Lukoil to stabilise falling oil production at its West Siberia brownfields, which accounted for around 56% of the company's output in 2011, Reuters reported.

Rosnedra said Lukoil has secured rights to develop Imilorskoye, Zapadno-Imilorskoye and Istochnoye deposits located in Khanty-Mansiisk region.

Analysts have valued the Imilorskoye group of deposits at 66 million tonnes under C1 classification (explored), which classifies them as 'strategic' under Russian regulations, meaning they are off-limits for foreign companies.

Rosnedra said Rosneft and Gazprom Neft were other bidders in the auction where the starting price was set…

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