Nalco and LUKOIL Form Energy Chemicals Joint Venture to Serve Western Siberia
December 02 2010 - 4:00AM
Nalco (NYSE:NLC), providing essential expertise for water, energy
and air, announced today its Russian subsidiary has formed a joint
venture with a subsidiary of Russia's largest oil company, OAO
LUKOIL, to provide energy chemicals and services in western
Siberia.
The joint venture, OOO Kogalym Chemicals Plant, will be based in
Kogalym (West Siberia, Russia) and will provide LUKOIL production
operations in West Siberia with Nalco's upstream chemical
technologies and services, including well stimulation and cementing
additives, as well as oil field production and enhanced oil
recovery programs.
"We are excited about the opportunity to combine Nalco's leading
technologies in these areas with the LUKOIL's Kogalym supply chain
capability to provide world class products and services," said Erik
Fyrwald, Nalco Chairman and Chief Executive Officer. LUKOIL's
Kogalym facility will provide blending, bulk storage, rail and road
loading and unloading facilities and delivery to the well head.
Technical support laboratories together with field delivery and
application teams will enable the joint venture to design
customized chemical programs and provide complete chemical
management services. In addition to serving LUKOIL, the joint
venture will sell these oilfield programs and products to other oil
and gas producers in West Siberia.
Nalco's investment in the joint venture will permit further
enhancements of the production process at LUKOIL's Kogalym facility
and the production of Nalco's innovative programs that are designed
to perform in the challenging conditions of one of the world's most
severe environments. The joint venture will be majority controlled
by Nalco. It is planned that production volume for the joint
venture will increase seven fold by 2015, from an expected 4,000
tons to 28,000 tons per year.
About Nalco
Nalco is the world's largest sustainability services company
focused on industrial water, energy and air applications;
delivering significant environmental, social and economic
performance benefits to our customers. We help our customers reduce
energy, water and other natural resource consumption, enhance air
quality, minimize environmental releases and improve productivity
and end products while boosting the bottom line. Together our
comprehensive solutions contribute to the sustainable development
of customer operations. Nalco is a member of the Dow Jones
Sustainability Indexes. More than 11,500 Nalco employees operate in
150 countries supported by a comprehensive network of manufacturing
facilities, sales offices and research centers to serve a broad
range of end markets. In 2009, Nalco achieved sales of more than
$3.7 billion. For more information visit www.nalco.com.
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About OAO LUKOIL
LUKOIL is one of the world's leading vertically integrated oil
and gas companies. Main activities of the Company are exploration
and production of oil and gas, production of petroleum products and
petrochemicals, and marketing of these outputs. Most of the
Company's exploration and production activity is located in Russia,
and its main resource base is in Western Siberia. LUKOIL owns
modern refineries, gas processing and petrochemical plants located
in Russia, Eastern and Western Europe. The Company's products are
marketed in Russia, Eastern and Western Europe, and the United
States.
This news release includes forward-looking statements,
reflecting current analysis and expectations, based on what are
believed to be reasonable assumptions. Forward-looking statements
may involve known and unknown risks, uncertainties and other
factors, which may cause the actual results to differ materially
from those projected, stated or implied, depending on many factors,
including, without limitation: ability to generate cash, ability to
raise capital, ability to refinance, the result of the pursuit of
strategic alternatives, ability to execute work process redesign
and reduce costs, ability to execute price increases, business
climate, business performance, economic and competitive
uncertainties, higher manufacturing costs, reduced level of
customer orders, changes in strategies, risks in developing new
products and technologies, environmental and safety regulations and
clean-up costs, foreign exchange rates, the impact of changes in
the regulation or value of pension fund assets and
liabilities, changes in generally accepted accounting principles,
adverse legal and regulatory developments, including increases in
the number or financial exposures of claims, lawsuits, settlements
or judgments, or the inability to eliminate or reduce such
financial exposures by collecting indemnity payments from insurers,
the impact of increased accruals and reserves for such exposures,
weather-related factors, and adverse changes in economic and
political climates around the world, including terrorism and
international hostilities, and other risk factors identified by the
Company. Accordingly, there can be no assurance that the Company
will meet future results, performance or achievements expressed or
implied by such forward-looking statements. This paragraph is
included to provide safe harbor for forward-looking statements,
which are not generally required to be publicly revised as
circumstances change, and which the Company does not intend to
update.
CONTACT: Nalco Company
Media Contact:
Charlie Pajor
630 305 1556
cpajor@nalco.com
Investor Contact:
Lisa Curran
630 305 1475
llcurran@nalco.com
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