Lukoil to Look at Developing Shale Gas in Russia

Lukoil Holdings is examining development of unconventional shale gas in Russia.

A statement issued by the company said that Russia's biggest independent oil producer, "will evaluate the possibilities of shale gas production in Russia, taking into account the risks associated with the development of shale gas in Eastern Europe."

Lukoil is planning to increase the share of gas output in its total production figure from 20% in 2011 to over 35% in 2021.

The company's projects in Uzbekistan would be the main contributors.

Lukoil holds a 100% interest in the Gissar project and a 90% interest in Khauzak-Shady-Kandym-Kungrad project, with the remaining 10% controlled by the state-owned Uzbekneftegaz.

The company also plans to start construction of a trunk pipeline to transport gas from the South-Messoyakhskoye, Khalmerpayutinskoye and Pyakyakhinskoye fields in the Yamal-Nenets autonomous region, in 2013.