LUKOIL Overseas (operator of international upstream-projects of JSC LUKOIL) withdrew from the Zih-Govsana project in Azerbaijan, as LUKOIL reported.

The company explains its decision by discrepancy of economic indicators of Zih-Govsana with LUKOIL requirements to profitability of the project.

Decision of secession from the project is approved with LUKOIL partner - State Oil Company of Azerbaijani Republic (SOCAR).

Heavy costs connecting with ecological problems of contracting area are put in doubt in profitability of the project from the direction of Russian Holding, as the head of the company LUKOIL-Baku Fikret Aliev reported to AK&M.

In the middle of 2004 LUKOIL proposed to SOCAR to amend terms and conditions of a contract but the Azerbaijani party preferred to refuse it.

Contract for 25 years between LUKOIL and SOCAR was signed in 2001 but did not come into effect.

"AK&M", 17/02/2005 08:25