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Lukoil to Increase Spending to $20 Billion This Year, CEO Says

OAO Lukoil, Russia’s second-largest oil producer, will boost spending to more than $20 billion this year from an earlier planned $16 billion as it makes acquisitions and returns to production growth, according to Chief Executive Officer Vagit Alekperov.

“No matter the oil price we will not do two things,” Alekperov told reporters late yesterday near Syracuse, Italy, after approving a three-year strategy. “We will not lower dividend payments to our shareholders or correct our investment program.”

Lukoil is making asset purchases in Russia after years of declines in domestic crude production. It agreed to buy Samara- Nafta from Hess earlier this year and its $1.7 billion bid won the state auction for the Imilor field in Siberia late last year. Lukoil oil and gas output will rise over 3 percent this year, the billionaire CEO said.

To contact the reporter on this story: Stephen Bierman in Moscow at sbierman1@bloomberg.net

To contact the editor responsible for this story: Torrey Clark at tclark8@bloomberg.net

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