Wintershall exits Lukoil JV in Russia

Germany's Wintershall Dea has transferred its 50% interest in a long-standing joint venture with Russian counterpart Lukoil, as it shifts its focus in Russia more towards natural gas and away from crude oil.

Wolgodeminoil was founded in 1992, representing of the first international partnerships to be formed in Russia's oil sector following the collapse of the Soviet Union. It produces mostly oil but also gas at 12 fields in the Volgograd and Saratov regions of south Russia, lifting its 11 millionth metric ton of crude in March this year.

The share transfer, which will see Lukoil's Ritek subsidiary become the sole owner of Wolgodeminoil, has been confirmed by the Russian Federal Antimonopoly Service, Wintershall said on May 28. The deal is in line with Wintershall's corporate strategy, the German company said, which "envisions cost-optimised production with a focus on gas and gas condensate assets in its portfolio in Russia."

Wintershall's main focus in Russia is at the deep Achimov layers of the Urengoi gas field in Siberia, where it is partnered with Gazprom. It also works with Gazprom and OMV at Siberia's Yuzhno-Russkoye field. The company produced 321,000 barrels of oil equivalent/day of mostly gas in Russia in the first quarter, up from 300,000 boe/d a year earlier, thanks to a new project starting up at Achimov.

Wintershall is also partnered with Lukoil at the Ghasha concessions in the UAE.