State commission approves export duty breaks on LUKoil Caspian fields

The Russian government sub-commission on customs and tariff policies approved export duty breaks for LUKoil’s Caspian fields, which seem to be the same as for East Siberian fields. It is unclear how long the breaks will last, and we are unlikely to receive any clarity soon. The decision was expected and communicated earlier this month.

We estimate that the Yuri Korchagin project, which already enjoys a MET holiday until 2015, has an IRR of 10%, i.e. it does not break LUKoil’s own cost of capital. A two-year export duty break would raise that return to 14%.

(0 COMMENTS) | SEE MORE »
Share |

Lukoil shows negative results for 2Q2010 under US GAAP

On August 31, Lukoil released unaudited consolidated interim US GAAP financials for 2Q2010. Revenue rose 29% y-o-y to USD 26 bn, with growth mainly driven by a 31% spike in the Urals oil price, from USD 59 per bbl in 2Q2009 to USD 77 per bbl in 2Q2010. The operating results showed negative dynamics, though. Oil production contracted 2%, largely due to production decline at depleted oilfields in Western Siberia. Oil refining stayed the same, despite the purchase of a 45% equity stake in the Netherlands-based TRN oil refinery in 3Q2009. Following the deal, the company saw its oil refining capacity rise by 3.6 mn tons per year.

(0 COMMENTS) | SEE MORE »
Share |
DJIA® 12 811.32 +0.00 (0.00%)
Nasdaq 2 895.59 +0.00 (0.00%)
S&P 500 1 377.51 +0.00 (0.00%)
Shanghai 2 068.25 -3.26 (0.16%)
Nikkei 225 8 757.60 -79.55 (0.90%)
Hang Seng 21 430.34 -136.57 (0.63%)
FTSE 100 5 776.05 +0.00 (0.00%)
CAC 40 3 407.68 +0.00 (0.00%)
RTSI 1 409.67 -0.60 (0.04%)
MICEX 1 408.02 +0.23 (0.02%)
USD/RUB 31.51 +0.21 (0.68%)
EUR/RUB 40.22 -0.06 (0.14%)
EUR/USD 1.28 -0.01 (0.81%)
GBP/USD 1.60 -0.00 (0.27%)
OUR CLIENTS