- Diligent cost control and careful scheduling are key strategies employed by the company’s Project Development business, which oversees nearly 40 major projects. An example is the Kerisi field development program in Indonesia, which achieved initial oil and natural gas production in December 2007.
LUKOIL Financial and Operating Results (COP Net)*
onocoPhillips has 20 percent equity ownership in LUKOIL, a Russia-based integrated energy company active in about 30 countries. This investment provides ConocoPhillips with exposure to Russia’s vast oil and natural gas resources and to LUKOIL’s significant refining and marketing interests.
The company’s cumulative investment in LUKOIL stock totaled $7.5 billion at year-end 2007, accounting for 19 percent of ConocoPhillips’ 2007 daily barrel-of-oil-equivalent (BOE) production.
Additionally, ConocoPhillips and LUKOIL have partnered in the Naryanmarneftegaz joint venture, with startup of the large Yuzhno Khylchuyu field expected during 2008.
Approximately 30 employees are seconded between the companies to facilitate knowledge exchange, creating significant value through technology applications and business process improvements.
LUKOIL’s 2007 milestones include the discovery of six new oil, natural gas and condensate fields and entry into a joint venture with GazpromNeft (Russia) that will open access to new ventures in several prospective areas. LUKOIL also commissioned a new natural gas field in Uzbekistan, as well as new facilities at refineries in Volgograd, Ukhta, Perm, Odessa and Romania.
ConocoPhillips’ estimated share of LUKOIL’s 2007 production was 444,000 BOE per day and refining crude oil throughput was 214,000 barrels per day.
