Alekperov assesses effects of sanctions on Lukoil

 Alekperov assesses effects of sanctions on Lukoil

Technological sanctions placed on Russia's oil and gas sector have negatively affected Lukoil's operations and the sphere as a whole, but it is possible to adapt to restrictions, Lukoil's President Vagit Alekperov told CERAWeek energy conference in Houston.

He said sanctions destroyed Lukoil's joint project with France's Total and made it harder to have access to technologies. At the same time, Alekperov noted that transitioning to domestically produced technologies will allow to adapt to restrictions.

Lukoil's President said that the OPEC+ deal on cutting oil production has allowed to save the market from speculators, while the developments in Venezuela and Iran could lead to oil price growth to over $100 per barrel.

He noted that OPEC+ focuses not on the oil price but on how much oil remains, which allowed to get rid of speculators on the market. "It is hard to imagine what effect developments in Venezuela and Iran might have had if oil prices grew to over $100 per barrel," TASS cited Alekperov as saying.

According to him, the company plans to increase production by 1-1.5% annually in the next 10 years. Lukoil's president added that the company is currently in the process of updating its development strategy. Alekperov noted that the updated strategy will be presented in the autumn.