LUKoil to cut projects in 2009

MOSCOW, Dec. 15 (UPI) -- LUKoil, the largest oil producer in Russia, said Monday declining oil prices and the faltering world economy forced it to cut back on several projects.

LUKoil had warned in October it would drop its expenses for 2009 from around $8.3 billion to $5.1 billion as oil prices gave up around $100 from their July highs near $147 per barrel.

On Monday, LUKoil officials said they would delay moving ahead with Central Asian gas projects and upgrades to facilities in Bulgaria because of dramatic setbacks in world markets, the Platts news service reported.

LUKoil Vice President Leonid Fedun said Thursday that world crude prices below $75 per barrel were not justified by market conditions and called on Russia to follow planned cuts by the Organization of Petroleum Exporting Countries at its meeting in Algeria Wednesday.

Fedun said his company has put off a scheduled board meeting until next week to consider the OPEC moves.