March 14, 2011 / 9:59 AM / 9 years ago

UPDATE 1-Russia's Bashneft picks LUKOIL as Arctic partner

* Bashneft in final discussions on partnership with LUKOIL

* Cos to develop Trebs and Titov fields at cost of $5-6 bln

* Fields hold estimated 200 million tonnes of oil

(Adds details, background)

MOSCOW, March 14 (Reuters) - Russia’s mid-size oil producer Bashneft (BANE.RTS) has zeroed in on LUKOIL (LKOH.MM) to help shoulder part of the $5 billion to $6 billion investment burden for the development of the giant Arctic Trebs and Titov fields.

“Talks (with LUKOIL) are not finished yet, but they are in the final stages and will very soon be over. It’s doubtful that Bashneft will have more than one partner,” the firm’s Chairman, Alexander Goncharuk, told journalists on Monday.

Several Russian and foreign companies, including LUKOIL have been eyeing involvement in developing Bashneft’s Trebs and Titov fields, which hold an estimated 200 million tonnes of oil.

Earlier this month, Bashneft’s parent company Sistema (SSAq.L) said it was in talks to sell up to 25 percent of Bashneft, Russia’s fifth largest oil firm, to India’s ONGC (ONGC.BO). [ID:nLDE7231X7]

Bashneft won the licence to develop the Trebs and Titov fields in December. Since that time it has been searching for a partner positioned to share the between $5 billion and $6 billion development cost for the project.

Bashneft produced 14.5 million tonnes of oil in 2010, and Alexander Goncharuk said this volume will rise to 18-20 million tonnes by 2013-2014, prior to the launch of Trebs and Titov. (Reporting Olesya Ostakhova; writing by Jessica Bachman; editing by Maria Kiselyova)

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