Russia’s Lukoil Buys 5% of Chevron Project

AO Lukoil Holding, Russia’s largest oil company, said it agreed to buy 5% of the $20 billion Tengiz oil venture in Kazakhstan from Chevron Corp. Terms were not disclosed. Russian oil and gas analyst James Bunch at Renaissance Capital said Lukoil’s participation in the field should give Chevron political leverage to negotiate pipeline access. “They’re so desperate that they actually ship crude by railroad car to Finland. They’d much rather put it in the pipeline if they could,� Bunch said. Lukoil’s acquisition reduces San Francisco-based Chevron’s share of the Tengizchevroil venture to 45%. The Kazakh government owns 25% of the venture and Fairfax, Va.-based Mobil Corp. owns 25%. The Tengiz field produces 150,000 barrels of oil a day. Chevron shares were unchanged at $68.50 on the NYSE.