LUKoil, Russia’s largest independent oil producer thinking about investing in West Africa

We know that the Europe, U.S. and China have an interest in the oil resources that all over Africa.  Recently of late Russia is now showing much interest in the region as well.  The Moscow Times reports that LUKoil, Russia’s largest independent oil producer, has held top-level meetings with representatives from three West African states, including Liberia, as a part of a $9 billion overseas investment program.

The president of LUKoil Overseas, Andrei Kuzyayev, met Ghana’s energy minister, Joe Oteng Adjei, for discussions about the expansion of the company in Ghana, including the development of new projects, according to the latest corporate newsletter, Neftyanie Vedomosti. After leaving Ghana, Kuzyayev held talks in the capital of Sierra Leone, Freetown, and LUKoil Overseas senior vice president Dmitry Timoshenko visited Liberia’s capital of Monrovia.

Countries like Sierra Leone and Liberia, “which have just come through terrible civil wars … are today, with the interest of foreign investors, quickly resurrecting their shattered economies,” the company’s publication said.[…]

The West African continental shelf is an interesting prospect for many international companies, said Valery Nesterov, an oil analyst at Troika Dialog. “I think almost all Russian companies will be looking at the West African shelf — including Rosneft and TNK-BP,” he added.

LUKoil’s potential resources in the area currently consist of up to 35 million barrels. The company said in September that it might have more petroleum in West Africa than in West Siberia.

Russia’s new dash in Africa continues.  Russian companies are looking to expand abroad. What better place than Africa. The region needs foreign investment, Russia needs new markets.  Africa unlike Europe, Asia, and Latin America, Russian oil companies actually stand a chance to compete on equal terms unlike other regions of the globe that are dominated by American, British, French, Chinese, Norwegian, Canadian, Turkish, Brazilian energy companies.  The more foreign competition there is for Africa’s resources, the better economic opportunities available if managed competently.

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