LUKOIL OVERSEAS: 2007 PERFORMANCE
Preliminary results of the operational and economic activities of LUKOIL
Overseas in 2007 have been summarized
The oil and gas condensate production of the projects of
LUKOIL Overseas (all international upstream projects
of LUKOIL except for the Tengiz field) totaled 5.17 million tons (5.3% of
LUKOIL’s total oil production). The gas production exceeded 2.5 bcm (15.4% of
LUKOIL’s total gas production). Thus the total hydrocarbons production of
LUKOIL Overseas
grew 10.8% against the level of 2006. Also the
EBITDA has exceeded 1 billion USD.
In 2007, the company celebrated its 10th anniversary. The central
event of the company’s anniversary year was the commissioning of the Khauzak gas
field in Uzbekistan in November. This
event became an important step in the implementation of LUKOIL’s gas strategy.
The operations at Khauzak are carried out within the framework of the
Kandym-Khauzak-Shady-Kungrad mega-project, which is currently the largest
investment project in the Republic of Uzbekistan. Within the framework of the
Aral project, the PSA of which came into force in January 2007, the investors’
consortium with the participation of LUKOIL Overseas started the 2D seismic survey in the Uzbek sector of
the Aral
Sea in the autumn of the last
year.
The main contribution in the fulfillment of the operational plans was
provided by the company’s assets in Kazakhstan. A number of large
production and infrastructure facilities were commissioned here. In the course
of carrying out the project of developing the Shah-Deniz field, the company’s
annual production in Azerbaijan
increased multiply
against the results of 2006 – from 1.4 to 320 million cubical meters of gas and
from 0.3 to 88 thousand tons of oil and gas condensate.
In 2007, LUKOIL Overseas three times announced discoveries of hydrocarbons.
In particular, an oil field was discovered in the Medina prospect of the Condor exploration block in
Colombia (a joint project of
LUKOIL Overseas and Ecopetrol, the state company). LUKSAR, the joint
venture of LUKOIL Overseas and Saudi Aramco, discovered an accumulation of
hydrocarbons in the Tukhman prospect of the Block A contract area in Saudi
Arabia. Commercial
reserves of hydrocarbons were discovered in the Gawaher prospect in the Meleiha
block in Egypt.
Under this project, the extension of the Agreement until 2024 ratified by
the Egyptian parliament went into force in April 2007.
Strengthening its positions in West Africa LUKOIL Overseas signed an
agreement for purchasing 56.66% of the share in three exploration projects in
offshore areas in the Gulf of
Guinea, blocks CI-101 and
CI-401 in the continental shelf of the Republic of Cote d’Ivoire and the Cape Three Points Deep Water block in the shelf
of the Republic of
Ghana. Developing the
cooperation with the leading global oil and gas corporations, LUKOIL signed a
number of important agreements in 2007. In February, the
Memorandum of Understanding was signed with Qatar Petroleum, and in April a
similar document was signed with Pertamina (the state company of
Indonesia). In September, an
agreement for joint exploration of a number of prospects in the territory of the
Republic of
Indonesia was
signed. Following this event an agreement for strategic
cooperation was signed with CNPC, the state petroleum corporation of China.
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