Lukoil starts building two huge oil platforms for North Caspian

United Shipbuilding Company (OSK) obtained an order from Lukoil for the building of a drilling platform (14 billion rubles) for Caspian works. The second order for the same sum was made to former subsidiary structure of Lukoil Globalstroy Engineering. Sources at the market say, OSK obtained this order not only due to “political motives” but due to recent purchase of 41% of shares of Astrakhan Caspian Energy.

Today President of Lukoil, Vagit Alekperov and president of OSK, Roman Trotsenko will meet in Severodvinsk in presence of Russian PM, Vladimir Putin and sign a contract for building of stationary ice-resistant drilling platform for oil deposit n.a. Filanovsky in the Caspian Sea (development will start in 2015). As reported by the source, the contract amounts to 14 billion rubles and the building will take about 3.5 years.

The platform will be built in Astrakhan, at the facilities of Caspian Energy Group 41% of which were purchased by OSK in summer. The corporation has already applied to FAS about consolidation of controlling ownership of Caspian Energy and expects its approval in the nearest future. In summer market sources said, OSK purchased the group in order to obtain access to Caspian projects of Lukoil. Caspian Energy is experienced in building of ice-resistant platforms as the group has already built a platform for another Caspian deposit of Lukoil (Korchagin deposit), which was put into operation in 2010. This platform was evaluated in 20 billion rubles.

The results of Lukoil tenders for building of surface facilities at Filanovsky deposit will be officially announced on November 15. Besides OSK, Globalstroy Engineering and Astrahkan plant Krasnye Barrikady won the tenders for building of main objects at the deposit. Globalstroy Engineering will build central technological platform evaluated in about 14 billion rubles as well. The company also participated in tender of building of ice-resistant platform, however OSK won it. Krasnye Barrikady will build platforms of raiser block and accommodation module with linkspan for 4.5-5 billion rubles.

As reported by the source, Lukoil “initially considered possible giving of the most interesting orders to the closest companies”, however, then it was decided to “divide the main orders equally” with OSK. Before 2004 Lukoil used to hold 38% of Golbalstroy Engineering shares (then the company’s name was Lukoil-Neftegazstroy CJSC), then the shareholding was sold to the company’s management. Board of Directors of Globalstroy Engineering includes Serik Rakhmetov who used to be vice-President of Lukoil responsible for capital building until 2004.

The source says there was a political motive in division of the order with state OSK, however, “technical competences of Caspian Energy were the main reasons even though this company offered higher price”. Other source specifies, the site where Globalstroy Engineering will build its platform remains unknown and “they will possibly give the order to Caspian Energy as a subcontractor”.

Lukoil will place new large orders for Filanovsky deposit. “The point is in projects for the first launch complex of the deposit, however, there will be the second and objects for it will be built at least in two years”, one of the sources says. This module will consist of three main objects including the second ice-resistant drilling platforms.

Such orders are profitable for OSK as their recoupment term is short, Mikhail Pak from Aton notes. In 2009 President of Lukoil, Vagit Alekperov claimed the amount of building and mounting works in the Caspian Sea would make up about $12 billion.

Source: http://rosinvest.com/novosti/873437
Translated by Alexandra Utyasheva

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