LUKoil, Russia's top oil producing company, has said that it plans to invest twelve billion dollars over the next decade to increase international production more than four times to as much as twenty million tons a year (400,000 barrels a day).
LUKoil Overseas Holding, the company's international unit, expects to account for about a third of LUKoil's total output, or thirty to fifty million tons a year, by 2020, said Andrey Kuzyaev, the unit's president. The subsidiary will produce about four and a half million tons of oil this year.
LUKoil is trying to increase production abroad as output from less efficient Siberian wells declines. It costs the company about $2.40 to produce a barrel of oil in Russia, compared with only one and a half dollars at international fields, Kuzyaev said during an interview on the sidelines of an oil conference in Azerbaijan.
“Our aim is to increase the company's market value and share price by generating profit from efficient production,” he said. “We want to establish two or three centers of Lukoil's production outside of Russia.”