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. Last Updated: 07/27/2016

LUKoil Eyes a Barents Sea Terminal

ST PETERSBURG -- LUKoil may build new terminals on Russia's or Norway's Barents Sea coast to ease exports from its joint venture with U.S. ConocoPhillips, industry sources said.

The venture plans to produce 240,000 barrels per day in Russia's north by the end of this decade and is already building a terminal of the same size in the Arctic port of Varandei.

But as shallow Varandei can load only tankers with a maximum deadweight of 70,000 tons the venture needs a bigger outlet to ship volumes across the Atlantic or to Asia.

"LUKoil wanted to install a floating storage tank or build a terminal in the region of Murmansk, but it was turned down by local officials. Now LUKoil is mulling a terminal in Norway, which has suggested the idea," said a market source, familiar with LUKoil's plans.

LUKoil spokesman Dmitry Dolgov declined to comment.