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Russia's Rosneft oil giant is ready to sue Lukoil oil company — statement

Rosneft commented on the Vostochno-Taimyrskoye area dispute with Lukoil

© ITAR-TASS/Alexandra Mudrats

MOSCOW, August 31. /TASS/. Russia’s state oil company Rosneft is ready for constructive cooperation with Lukoil, but if that oil major continues its destructive activities related to unfair competition, the company will take necessary steps to protect the interests of shareholders using all legal instruments, runs Rosneft’s statement commenting the dispute with Lukoil on the Vostochno-Taimyrskoye area.

"We remind you that the complaint of Rosneft refers to the competition commission of the Federal Agency on Subsoil Usage due to a gross violation of the procedure for summing up the competition for the right to develop the Vostochno-Taimyrskoye area and are subject to consideration in court," the company said.

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In the statement Rosneft also notes that all disputes will be resolved "within the framework of legal procedures."

"Lukoil’s press service issued a statement on August 26, stating the company's readiness to be responsible for the reputation of the Russian oil industry and expressing the intention to develop constructive cooperation with Rosneft and to resolve disputed issues in the framework of legal procedures, adhering strictly to the rules of business and corporate ethics. Rosneft welcomes the intention of Lukoil to follow the principles declared by its press service," Rosneft said.

Lukoil-West Siberia, the subsidiary of Russian oil and gas major Lukoil, won the tender for the development of the Vostochno-Taimyrsky oil and gas field.

Rosneft filed a claim to Moscow Arbitration to invalidate results of the tender for Vostochno-Taimyrsky Subsoil Area which had been won by Lukoil.

On August 25, Rosneft’s spokesman and vice president Mikhail Leontyev held a press conference challenging the results of the tender. According to him the tender was held with violations.

In particular he said that the organizers did not open second envelopes, containing declarations of sums the competitors were ready to offer for the site. Leontiev did not rule out that an expertise of technical and economic indicators in the applications of Rosneft and Lukoil can be conducted.

In response Lukoil said that it may sue Leontiev for making insulting statements about the oil major.

Vostochno-Taimyrsky subsoil area is situated in Krasnoyarsk Region near the Khatanga river mouth. The area was split into the onshore and the offshore portions, making possible for Lukoil to bid for the onshore portion. Resources of the onshore area equal 4.5 mln tonnes of oil, 9.3 bln cubic meters of gas, and 0.5 mln tonnes of condensate.

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