OREANDA-NEWS. In October Lukoil is to resume negotiations about establishing a joint venture with Venezuelan company PdVSA. Lukoil is set to continue talks about forming a JV with PdVSA in Venezuela in October, Lukoil CEO Vagit Alekperov said, Antanta Capital investment bank informs. The Russian oil company’s chief executive added that Lukoil is not currently exploring the possibility of participating in Vietnamese and Somali offshore projects.

The joint venture is expected to engage both in the extraction and treatment of crude oil, as well as the production of synthetic oil, and likely in refining activities. Lukoil is expected to gain a 40% working interest in a project to tap the Junin 3 O&G block, with 60% going to PdVSA. Works at the Junin 3 block are part of the Magna Reserva strategic program which is being executed by PdVSA in cooperation with a number of foreign partners in order to increment proven oil reserves by 235 bn barrels in Venezuela.

Lukoil has been the most active in foreign projects compared to other Russian oil producers. The oil major is involved in 25 overseas projects in 10 countries, with 6.6% of the company’s proven reserves and 6.4% of its marketable hydrocarbon output falling to international projects. Lukoil is eager to bump up the proportion of oil extracted at its foreign projects to 20% of its aggregate output by 2013. Antanta Capital analysts are 'upbeat' about the company’s expansion into regions with substantial resource bases. "Our fair price for Lukoil stocks is $100 and our recommendation is 'buy'," one of the experts said.