Abuja Police arrest robbery suspects who rob bank with cutlasses                          109 -year-old, thousands of ghost workers uncovered in Zamfara civil service verification exercise                          Liverpool should be Champions already, but who be Arsenal where Chelsea dey sef?                         Top 10 Nollywood movies that defined the Nigerian film industry in 2019                          Rising Debt, Banking Sector Recapitalisation: Three major issues that will shape Nigeria’s economy in 2020                         Sanusi VS Ganduje: Sanusi fights dirty, sacks Ganduje ally from palace                         5 things no one has ever told you about Christmas                         How a small agritech start-up is taking on Nigeria’s adulterated palm oil cabals                         CBN scraps card maintenance fee, slashes bank charges in new banking guidelines                         EXPLAINED: 7 things you need to know about CBN's new guide on bank charges                         Religious Persecution: You are not world’s police, Buhari’s government lashes out at America                         Mahrez, Mane, Salah are nominees for African Footballer of the Year                         SAD! 19,273 Nigerian teachers fail 2019 Professional Qualification Examination                         Group commends Immigration over compulsory drug test for personnel                         BREAKING! Gunmen abduct Bayelsa commissioner’s 6-year-old son                         JUST IN! JAMB fixes March 14 for 2020 UTME examination                         Tesla to take fresh $1.4 billion loan from Chinese banks for Shanghai’s Gigafactory – Sources                         Igbos outraged over IGP’s roadblock order, decry 60 police roadblocks from Lagos to Onitsha                         Fayose’s faction sells Ekiti PDP secretariat as party’s crisis worsens                         Nigeria’s rising public debt remains worrisome, unsustainable - World Bank                        


4 things we know about LUKOIL, the Russian oil giant that signed a deal with NNPC

In Africa, the LUKOIL Overseas in charge of foreign projects only currently operates in three African countries.


Share this news


A LUKOIL gas station

Prior to the announcement of a partnership with Lukoil by the Nigeria National Petroleum Corporation, NNPC, Lukoil had started playing in the Nigerian downstream energy sector.

According to a statement on its website, it acquired an interest in the project from Chevron Corporation. The deal was approved by the NNPC on October 6, 2015.

Chevron and LUKOIL fund the project at 55 per cent and 45 per cent respectively. Oil and Gas Nigeria Limited and NNPC have carried partners in the project.

OML-140 includes the Nsiko, Nsiko North and Ofigbo discoveries, and a minor interest in the unitized Bonga Southwest Aparo Field which is operated by Shell.

Meanwhile, it was the Memorandum of Understanding signed by the NNPC and Lukoil at the just concluded Russia-Africa Economic Forum in Sochi that brought the latter more attention in Nigeria.

According to the MoU, the parties intend to consider possible cooperation in the exploration, production and refining of hydrocarbons in Nigeria as well as upscaling existing trading relationship.

The document also provides for possible design and technical cooperation between the companies and the provision of LUKOIL's know-how in the implementation of production and refining projects.

So, here are 4 things you need to know about LUKOIL.

1. Lukoil is an energy giant: Think of British Petroleum in the United Kingdom or Shell in the Netherlands or Mobil or Total from the US and France respectively. LUKOIL is in that league. It is one of the largest oil companies in the world and second largest in Russia after Gazprom.

2. Lukoil is involved in the entire energy value chain: When you think of Shell Petroleum in Nigeria, what comes to mind is that they are involved in the downstream sector, at least in Nigeria’s oil sector. You cannot see a Shell filling station along the highway, or its trucks loaded with petroleum products. That is not the case with LUKOIL.

LUKOIL is involved in the entire value, from the point of extraction to the point of selling the final product, which means it buys oil wells, extracts the crude oil, transports it through its own network of pipes or ships, refines it in its own refineries and sells it in its own filling stations.

Also, read 4 things you must know about Russia’s proposed investment on energy, railways in Nigeria

3. It currently has ongoing projects in 3 African countries: The company has operations and subsidiaries in more than 40 countries around the world. But in Africa, the LUKOIL oil Overseas in charge of foreign projects only currently operates in three African countries.

These include Ivory Coast where it has a production sharing agreement on the offshore block CI-205 in the Gulf of Guinea; Egypt where it undertakes the Meleiha, West Esh-El-Mallah, West Geisum, Northeast Geisum, and Ghana where it operates the Cape Three Points Deepwater.

4. LUKOIL has had only one CEO since 1993: Since transforming into a private open joint-stock company in 1993, the multinational has been led by Vagit Alekperov, a former Minister of Oil Production in the former USSR. As of 2019, he is rated by Forbes magazine as the third richest person in Russia with a net worth of $21.1 billion and the 46th richest person in the world. He owns 20.6 per cent of Lukoil.

Found this story useful? Share it.

Share this new


Sign In To Leave A Comment


Nigeria Today News. ©2019 Nigeria Today. All rights reserved.