“Internationally, we increased expenditures in Shakh-Deniz project in Azerbaijan and commenced exploration activities at our new projects in Ghana and Romania,” the company said in its earnings report for 2014.
In September last year, Lukoil asked the Romanian mineral resources authority (ANRM) to approve a six-month extension, until May 2015, on the obligatory exploration phase of a perimeter in the Black Sea, citing delays due to the late arrival of a drilling platform and the accumulation of “potentially dangerous” gases in the drilling area.
The lease contract for the EX–29 East Rapsodia perimeter in the Black Sea was signed on February 23, 2011 by ANRM and Lukoil Overseas Atash BV (80%) and Vanco International Ltd (20%).
The exploration period was set for five years since the lease agreement took effect, on November 4, 2011, and is divided into two stages, one mandatory and one optional.
“Refining expenses at our international refineries decreased by 3.3%, or by $33 million. The decrease of expenses was largely against the background of high level of expenses of our Romanian refinery in 2013 due to overhauls. Depreciation of euro to US dollar was also a factor of costs decrease,” the group said in its report.
The company’s Petrotel-Lukoil refinery in Ploiesti was shut down between February 20 and April 12, 2013 for major overhauling.
The Russian group’s expenses for the transport of crude oil to refineries dropped 18.1% last year, to $229 million, on lower volumes of crude brought from Russia to refineries in Romania and Bulgaria.
Lukoil’s net profit dropped 39.4% in 2014, to $4.75 billion from $7.83 billion in 2013, due to declining oil prices, especially in the fourth quarter of last year.
The Russian oil group’s sales revenues increased 1.9% last year, to $144.17 billion from $141.45 billion in 2013.
Besides the refinery in Ploiesti, Lukoil also has a network of more than 300 gas stations throughout Romania.