NAPERVILLE, Ill., Dec. 2, 2010 (GLOBE NEWSWIRE) -- 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 .
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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