Lukoil Takes $1 Billion Impairment on Conoco Oil Venture
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OAO Lukoil, Russia’s second-largest oil producer, recorded a $955 million impairment charge after a venture with ConocoPhillips found less oil than expected.
Lukoil had the charge in the fourth quarter at its OOO Narianmarneftegaz venture with ConocoPhillips, it said in a statement. Lower production at the northern Yuzhnoye Khylchuyu deposit due to “unanticipated geological reasons” resulted in estimated field reserves falling to 142 million barrels at the end of 2011 from 505 million barrels in 2008.