Lukoil, Enel to Join Forces on Upstream Gas & LNG

Russia's second largest oil company Lukoil and Italian utility Enel have today decided to join forces on gas projects, with the signing of a Memorandum of Understanding (MoU).

CEO of Enel, Fulvio Conti, and CEO of Lukoil, Vagit Alekperov, signed the MoU today at the St. Petersburg Economic Forum in Russia. The agreement will see the two companies cooperate in a number of areas, particularly with a view to potentially enter joint upstream gas projects, including in the Russian Federation, the Caspian Sea and North African basin.

Lukoil and Enel will also seek to share and expand their knowledge of LNG and pipeline gas supply and demand trends in Europe and the Russian Federation, through the undertaking of marketing studies on.

A supply deal may also arise from the MoU, with the two companies considering the possibility that Lukoil may supply Enel's OGK-5 gas-fired power plants.

Speaking after the signing, Mr. Conti said that both companies would benefit from the signing of the MoU, in several areas.

"Enel is very pleased with the chance to cooperate with such a relevant player on the Russian gas and oil market," he said. "This agreement will be beneficial to both parties for exploring new joint opportunities in the natural gas value chain, from upstream to gas supply."