October 31, 1998 - Vagit Alekperov, President of LUKOIL, and Michael E. Wiley, President of Atlantic Richfield Co. (ARCO), held working meeting in Moscow. ARCO is not only a major shareholder in LUKOIL (7.99%) but its strategic partner.

The parties discussed cooperation perspectives between the companies and performance of LUKARCO joint venture, established in February of 1997 to carry out major oil projects. LUKOIL’s equity in LUKARCO is 54%, ARCO’s equity is 46%. The estimated total size of investment could be $5 billion.

Presently LUKARCO participates in the following projects: the Caspian Pipeline Consortium (12.5%), consortia to develop Tenghiz oil field in Kazakhstan (5%), D-222 in the Caspian offshore in Azerbaijan (60%).

Vagit Alekperov and Michael Wiley approved cooperation between the two companies and expressed their hope in successful development of all the projects where LUKARCO takes part.

LUKOIL President stressed that combining efforts by a Russian and an American oil companies in the environment of low world oil prices fully conforms to their shareholders’ interests.

Michael Wiley said that despite the turmoil in the Russian economy ARCO continues to view LUKOIL as a reliable partner who duly meets its obligations.

 

 

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