Russian oil producer Lukoil is set to start its first natural gas production in Saudi Arabia next year, the company’s vice president announced.
“We made a discovery of 400billion cubic metres… This would be large enough and the first gas-producing project in Saudi Arabia,” Leonid Fedun said in a conference call.
Lukoil sealed the deal to produce gas from the region’s Block A last decade.
The news follows the company’s second-quarter results which saw its profits double to more than $2billion.
Net income at Lukoil hit $2.1billion, after a dramatic 107% increase for the second three months of the year.
Profits last year were hit by a large tax bill.
Sales revenue reached $35billion for Russia’s second-largest producer, which saw production rise 2.3%, to 199.5million barrels of oil equivalent, with net income rising by 102%.
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