Install

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

. Last Updated: 07/27/2016

Yukos Plans $250M Siberian Venture

A joint venture between the nation’s No. 2 oil producer Yukos and Hungary’s MOL group plans to invest $250 million in 2001-19 in the development of an oil field in Siberia, Yukos said Wednesday.

"But the investment in Zapadno-Malobalyk will depend on signing a production sharing agreement, which we expect to happen before the end of this year," a Yukos spokesman said.

Yukos and MOL’s subsidiary, MOL CIS Ltd., signed an agreement to develop jointly Zapadno-Malobalyk field in western Siberia with estimated reserves of 24 million tons of crude oil in November 1999.

Under local legislation, the production sharing agreement to develop the field, which grants tax breaks to investors, has to be signed by the government and the local administration, but it does not need parliament’s approval.