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Lukoil invests in Nenets AO

Traditional Nenets chum in front of Lukoil's office in naryan-Mar.

Russian oil major Lukoil is going to invest 35-40 billion rubles yearly in oil field development in the Nenets Autonomous Okrug.

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An ambitious investment plan was announced by Vagit Alekperov, President of Lukoil on November 6,  after singing  a cooperation agreement for the period 2015-2019 between the  oil company and the Nenets Autonomous Okrug (NAO) administration, informs the NAO Administration in a press release.

The North of the Timan-Pechora oil and gas province will play a key role in the company’s plans.  The investments in NAO are included in the company’s ten-year program, which is under development by the company. This is investment into geological exploration of new territories on the east of NAO, field facilities construction and construction of additional infrastructure, said Alekperov.

The regional authorities believe Lukoil’s investments will increase income to the regional budget.  98% of Nenets Autonomous Okrug’s income comes from the oil industry.

“It is very important that Lukoil’s investment plans in NAO are increasing, Igor Koshin, Governor of the Nenets AO said. “Now the regional administration is able to forecast payments into the budget for social-economic development for the next five years.” Koshin says that the agreement with Lukoil will bring not only social help to development of the territory, but also new construction technologies. “We know perfectly well that the oilmen often do things better, more effective and qualitative. So, our aim is to use the experience of the oil company in construction of objects and infrastructure, transport, the governor noted.