Lukoil, the multi-billion dollar Russian energy producer, is expected to move its overseas division headquarters from Moscow to Dubai, UAE-based The National reported earlier this week.
The relocation will include shifting over 400 employees to the UAE, allowing executives and company staff to have better control of Lukoil’s assets, added the newspaper.
Some of the main company’s oil production operations are located in the region, such as in Turkey, Iraq, and Cyprus.
“We will establish the headquarters of Lukoil Overseas in Dubai in order to be closer geographically to our main projects. We already have between 600 and 700 employees in Dubai, many of whom are working on the Iraq project,” The National quoted a Lukoil spokesperson in Moscow as saying.
The move would be finalized before the end of the year, he added.
Lukoil was founded in 1991 through the unification of three small oil producers. Its overseas development began in 1994, when it bought a stake in the Azerbaijan energy industry, and was soon involved in oil and gas projects in Kazakhstan, Uzbekistan and West Africa, showed the company’s website.
The oil company is interested in Saudi Arabian oil, but did not participate with large international oil companies in bidding for part of Abu Dhabi’s onshore oil business, which is currently being negotiated, reported the newspaper.
Lukoil is vital to Russia's economic development. According to its online website, it is one of the largest tax payers of the Russian Federation with a total amount of $39.9bn paid in tax money during 2012.