LUKOIL AND TECHNIP CREATE A JOINT VENTURE COMPANY IN RUSSIA
Tuesday, July 22, 2003
Today in Moscow LUKOIL and Technip, through their respective affiliates LUKOIL-Neftegazstroy and Technip Germany, have signed an agreement to create a 50/50 joint venture company for the development and realization of projects related to oil and gas production, gas processing, refining and petrochemicals in Russia, as well as CIS and other countries.
The joint-venture will have the exclusive right to bid on contracts designated by both parties as projects they wish to pursue together in Russia and, from time to time, in other countries as well. The scope of cooperation includes all onshore projects other than drilling activities.
Taking advantage of the complementary capabilities and experiences of both parties, this new joint venture company will be in a position to provide highly effective and competitive engineering, procurement and construction services for project execution to various clients in the Russian oil and gas industry.
Serik Rakhmetov, Vice President of LUKOIL and Chairman of LUKOIL-Neftegazstroy , stated: “Technip being one of the best engineering groups in the world, we are convinced that our joint venture will add significant value to projects and therefore to our clients".
Daniel Valot, Chairman and CEO of Technip, commented: “The signature of this partnership agreement with a major Russian construction player bodes well for the growth of our activities in a country where we have 40 years of experience and which has a huge potential for further oil and gas development.”
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PSC “LUKOIL-Nephtegazstroy” integrates more than 35 thousand specialists, Company has the potential to carry out all types of activities, from designing to “Turn-key” commissioning of projects, as well as reconstruction, regular and capital maintenances of commissioned and active projects and their after-construction service, each Company subdivision has its own production facilities for manufacturing and assembling blocks and units for construction-and erection structures. Now PSC "LUKOIL-Nephtegazstroy" has more than 15 branches in Russia and abroad. Organisational structure of “LUKOIL-Nephtegazstroy” incorporates over 30 subsidiaries and affiliated companies with share in their capital. Close co-operation with LUKOIL as a major partner made Company a leading contractor at the market of engineering and constructing services in oil-and gas sector.
With a workforce of about 19,000 persons, Technip ranks among the top five corporations in the field of oil, gas and petrochemical engineering, construction and services. Headquartered in Paris, the Group is listed in New York and Paris. The Group’s main engineering and business centers are located in France, Italy, Germany, the UK, Norway, Finland, the Netherlands, the United States, Brazil, Abu-Dhabi, China, India, Malaysia and Australia. The Group has high-quality industrial and construction facilities in France, Brazil, the UK, the USA, and Finland as well as a world-class fleet of offshore construction vessels. Technip trades under the symbol TKP on the NYSE and under the ISIN FR0000131708 on the Euronext.
