Get the latest updates as we post them — right on your browser

. Last Updated: 07/27/2016

Conoco to invest $3 billion in oil industry

Conoco Inc. has announced that its joint venture, Polar Lights, will invest as much as $3 billion in Russian oil field development, with plans to design and construct an entire development infrastructure, the first such deal by a U. S. company.

Conoco, a subsidiary of Du Pout, will develop oil fields in the Timan-Pechora basin, west of the Ural Mountains near the Arctic Circle. The company estimates recoverable reserves at 110 million barrels.

Investments will consist of the drilling of 24 wells, the construction of a central processing facility near three identified fields, and a 40, 000 barrel per day pipeline with potential to double initial capacity.

Production is planned for late 1994. Profits will be shared equally by the 50-50 joint venture, with a portion reinvested in further development.