SPIEF 2021: LUKOIL Cooperation Agreements to Boost Energy Transition

On the occasion of the St. Petersburg International Economic Forum (SPIEF) 2021, LUKOIL signed several cooperation agreements to develop Russian digital technologies, develop renewable energy and carbon-free technologies, increase efficiency, reduce emissions, and raise productivity for the oil and gas industry and support the energy transition.


LUKOIL and Rostec to develop Russian digital technologies

© Photo: Lukoil

Sergey Kochkurov, Vice President for Oil and Gas Production in Russia of LUKOIL, and Dmitry Lelikov, Deputy CEO of Rostec State Corporation, met at the St. Petersburg International Economic Forum. They defined the development strategy for their joint activities envisioned by the current Cooperation Agreement.

The parties plan to launch joint projects in several domains: oil and gas production, petroleum products transportation, fine chemistry, technologies of recycling and utilization of oil-containing waste.

The companies will also join efforts to develop Russian digital technologies, such as technological processes management systems and oil and gas infrastructure monitoring systems that employ unmanned aerial vehicles.

Rostec and LUKOIL intend to create a joint venture for aircraft refuelling in Zhukovsky Airport (Moscow region).

The partners agreed to cross purchase goods and services: energy efficiency equipment, production management systems, fuels, lubricants, and petrochemicals (including, but not limited to motor oils, hydraulic oils and gas turbine lubricating oils).

The companies will also share their best available technologies for protection of the environment, emergencies prevention and response.


LUKOIL AND ROSATOM cooperation on renewable energy and carbon-free technologies

President of LUKOIL Vagit Alekperov and Director General of ROSATOM Alexey Likhachev held a meeting at the St. Petersburg International Economic Forum and signed a Cooperation Agreement.

© Photo: Lukoil

The document provides for collaboration in import substitution and development of cooperation at Russian and global markets. The parties will join efforts to work on renewable energy and carbon-free technologies, develop and implement environmentally friendly and digital solutions, as well as create equipment and services for Russian fuel and energy complex. The agreement puts a premium on use of composites, motor oil and fuels (including those suitable for cold climate), production of polymer materials, fine and specialty chemicals, second- and third-generation biofuels.

“We share a long history of fruitful cooperation. The new agreement opens up new cooperation horizons in a multitude of domains: green energy, production of polymers and chemicals, creation of digital solutions. By joining our efforts, we will be able to employ the best practices of both companies,” said Vagit Alekperov.

“Collaboration with LUKOIL on environmental, digital, import substitution projects in the production of high-tech equipment will expand the use of new developments and technologies that are important not only for the further development of companies, but also for the global development of the country,” noted Alexey Likhachev.


Baker Hughes and LUKOIL agreement

Baker Hughes and LUKOIL have signed an agreement to deepen their global collaboration. Announced during the St. Petersburg International Economic Forum (SPIEF), the agreement will leverage Baker Hughes’ diversified technologies combined with LUKOIL’s deep industry expertise and extensive international production chain to increase efficiencies, reduce emissions, and raise productivity for the oil and gas industry and support the energy transition.

© Photo: Lukoil

The two companies will explore several key collaborations, including:

  • An artificial lift technology partnership to test Baker Hughes’ electric submersible pumps (ESP) with LUKOIL’s leading energy efficient Permanent Magnet Motors (PMM). Baker Hughes ESP technologies deliver the broadest operating range in the industry, with unsurpassed levels of efficiency, reliability, and performance, while LUKOIL’s PMM technology enables a reduction in energy consumption by 15-20% compared to current artificial lift processes and is a leader in the Russian market. The two companies will share technology expertise, joint training, and business opportunities, and aim to launch joint pilot projects in Egypt, Iraq, Russia, and the U.S. within the next five years.
  • An integrated approach for LUKOIL’s carbon reduction and energy efficiency initiatives. The companies will explore emissions mapping and abatement projects throughout the production chain at LUKOIL Overseas projects, encompassing reserves of more than 1.5 billion barrels of oil equivalent in 11 countries. Baker Hughes will also provide consulting for deployment of leading technologies to detect and reduce emissions as well as enhance oil production efficiencies for flaring, combustion, and additional applications. The first pilot is expected to be launched in Uzbekistan.
  • A cooperation to produce Baker Hughes’ spoolable composite pipes in Russia, leveraging LUKOIL’s polymer production to provide an efficient and lower carbon alternative to traditional steel pipes. With Baker Hughes’ expertise in flexible pipe solutions, the new pipes could enhance operational efficiency and scale up emissions reduction successes for LUKOIL while supporting local manufacturing capabilities.

“We are delighted to have signed this landmark collaboration with LUKOIL that will advance our efforts to lead the energy transition in the region,” said Lorenzo Simonelli, chairman and CEO of Baker Hughes. “We look forward to building upon our long-term relationship with a forward-thinking partner, collaborating in strategic areas to help LUKOIL achieve further success. I look forward to sharing our expertise and technologies together through an integrated approach essential to accelerate our journey towards net-zero emissions.”

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