Lukoil and Samara-Nafta Vodaturskaya Yana. Lukoil is Russia’s

Lukoil and Samara-Nafta Vodaturskaya Yana

Lukoil is Russia's second largest oil company and its second largest producer of oil. In 2009, the company produced 97.615 million tons of oil; 1.972 million barrels per day. Lukoil was formed in 1991.

Lukoil owns seven oil-processing companies in Eastern Europe and holds 49% share of ISAB refinery complex in Sicily.

LUKOIL acquired the oil company Samara-nafta for $2.05 billion in 2013 year.

About Samara-Nafta Samara-Nafta carries out its activities within Samara and Ulyaniovsk regions. Cumulative oil production counting from the time when the field development was started is 10 MM tons. Since 2009 Samara-Nafta has been keeping the 2nd position in oil production in Samara Region and the 12th position in Russia. Current annual production is above 2 MM tons.

Analysts of Gazprombank note that the acquisition of Samara-Nafta will increase LUKOIL’s annual production volume to approximately 2.5 million tons. Analysts of Sberbank CIB also think that the price of the asset is high, but point out, that they may not know about possible hidden potential.

Analysts of Alfa Bank say that "Samara-Nafta" is a very promising active. LUKOIL will be able to increase production. VTB Capital notes the high price of the purchase and currently believe that for the long-term value of the LUKOIL this deal is negative.

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