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LUKOIL refusing plans to construct giant petrochemical complexes

Oil&Gas Materials 24 November 2020 16:05 (UTC +04:00)
LUKOIL refusing plans to construct giant petrochemical complexes

BAKU, Azerbaijan, Nov.24

By Leman Zeynalova – Trend:

Russia’s LUKOIL is refusing plans to construct giant petrochemical complexes, Trend quoted Vice President for Strategic Development of PJSC LUKOIL Leonid Fedun as saying.

Talking about the reasons, Fedun said that the market conditions are changing and new technologies enable companies to make the recycling of plastics almost an endless process. “Therefore, the demand for oil will decrease by 3-5 million barrels per day in the future.”

LUKOIL will implement only the projects that are guaranteed to pay off until 2035, he noted.

“We need to adapt to the legislation under which our assets operate. And, judging by the European Green Deal roadmap, Europe will get rid of entire industries in order to achieve carbon neutrality. So, most likely we will have to modernize our factories,” he said.

LUKOIL is one of the largest publicly traded, vertically integrated oil and gas companies in the world accounting around 2 percent of the world's oil production and around 1 percent of the proved hydrocarbon reserves.

LUKOIL operates in more than 30 countries in four continents. The company’s revenues in 2019 stood at 8 trillion RUB. Its proved hydrocarbon reserves stood at 15.8 billion boe last year. Hydrocarbon production in 2019 was equal to 2.4 million boe per day.

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Follow the author on Twitter: @Lyaman_Zeyn

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