Alliance Oil Company Ltd. Sdb (OMX:AOIL-SDB)
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2 Years : From Jun 2011 to Jun 2013
Swedish independent oil company Alliance Oil Co. Ltd. (AOIL-SDB.SK) is looking to extend its cooperation with Spanish oil company Repsol YPF (REP.MC) on projects in Russia, according to its Chief Executive Arsen Idrisov.
"We might have even more cooperation in terms of exploration activity and we are considering some deals," Idrisov told Dow Jones Newswires, adding exploration deals for both oil and gas are of interest.
The companies last summer agreed to form the Russian exploration and production joint venture Alliance Repsol Oil and Gas, or AROG, of which Alliance holds a controlling 51% stake.
Idrisov also said a plan on how to develop Alliance Oil's key Kolvinskoye oil field, located in the Timano-Pechora region of Russia, is likely to be presented this summer. The field has not yet produced to expectations following its opening in September last year.
"I know everybody is focused on the volumes and we are disappointed with Kolvinskoye's performance, but it's not that Kolvinskoye makes losses, [it actually] makes a profit, and [has been] a good profitable field so far," Idrisov added.
For the first quarter of this year, the company made a net profit of $137.2 million compared, compared with a profit of $87.8 million for the same period 2011, partly helped by higher oil prices.
In the second quarter, prices have so far been lower while the company sees good demand in terms of volumes.
"In terms of the margins you can say definitely that the prices are not as high as they were during the first quarter," Idrisov said, "but we have 1.5 months to go, so we will see how this will affect the margins."
At 0755 GMT shares trade 8.3% higher at SEK66.10.
Repsol could not immediately be reached.
-By Katarina Gustafsson, Dow Jones Newswires +46-8-5451-3097; email@example.com;Twitter: @DowJonesNordics