Group is dedicated to the implementation of oil and gas exploration and
production projects in the Middle East and Central Asia, West Africa, Europe
and Central America.
Shah-Deniz gas-condensate field with an area of 860 km2 is located in the Azerbaijani sector of the Caspian Sea, 100 km southeast of Baku at depths of up to 700 m.
The 40-year Production Sharing Agreement for the project providing for a possible 12-year extension took effect in 1996, while the discovery of commercial reserves occurred in 2001, and the first gas was produced in 2006.
The parties to the project's operating consortium are as follows: BP (operator) – 28.83%, TPAO – 19%, Petronas – 15.5%, SOCAR – 10%, LUKOIL– 10%, NICO – 10%, and SGC – 6.67%.
Recovered gas is delivered to buyers via the South-Caucasus pipeline Baku - Tbilisi - Erzurum, while recovered liquid hydrocarbons are delivered via the Baku-Tbilisi-Ceyhan oil pipeline.
In July 2018, Shah Deniz Stage 2 was launched increasing gas production by 16 billion cubic meters per year (bcma) to 26 bcma.
On December 12, 2009, the consortium of PJSC LUKOIL and the Norwegian Statoil was awarded a contract for the development of West Qurna-2, one of the world's largest fields.
West Qurna-2 is a major investment project carried out in Iraq by a private company, as part of which maximum production growth has been achieved from a single field.
- West Qurna-2
In May 2012, following completion of the 4th licensing round, LUKOIL in conjunction with INPEX CORPORATION (Japan) was awarded the right to conduct exploration and subsequent development of Block 10.
The 5.5 thousand km2 block is located in Di-Kar and Mutanna provinces, 120 km west of Basra, in the proximity of such major Iraqi oil fields as Rumaila and West Qurna. Production shares are divided as follows: LUKOIL - 60% (operator), INPEX CORPORATION - 40%.
The contract on Block-10 was signed in November, and came into force in December 2012. Between 2013 and 2014, the block had been demined and between April 2014 and February 2015, two thousand linear kilometers of the block were covered by 2D seismic surveys. The seismic surveys helped determine the promising targets for exploration drilling activities.
In 2017, LUKOIL and INPEX successfully tested the first Eridu 1 exploration well at Block 10. Testing of the Mishrif horizon revealed low-sulphur oil influx rate of over 1,000 cubic meters per day. It confirmed the geologists' prediction of a major hydrocarbon deposit at Block 10.
In 2018, we completed seismic surveys, drilled appraisal well which proved geological model and expanded license area.
In 2019, LUKOIL and Oil Ministry of Iraq agreed to consider the possibility of early commissioning of Eridu field.
- LUKOIL in the Republic of Iraq
The Karachaganak field is located in the West-Kazakhstan region, 140 km away from the city of Uralsk. It is one of the world's largest oil and gas condensate fields.
LUKOIL joined the project in 1997. The operator is Karachaganak Petroleum Operating B.V. Parties to the project include: Shell — 29.25% (co-operator), ENI — 29.25% (co-operator), Chevron — 18%, LUKOIL — 13.5% and KazMunaiGaz — 10%. The total number of staff is around 4.5 thousand people. The field is developed in accordance with the Final Production Sharing Agreement signed in November 1997 effective for a period of 40 years.
Further development of the field is underway with a focus on production growth.
The Kumkol field is located in the Kyzylorda region in Kazakhstan, 200 km away from the city of Kyzylorda. It is after joining the development project for this field back in 1995 that the Company began its operations in Kazakhstan.
The project's operator is Turgai Petroleum. Parties to the project include: LUKOIL — 50%, CNPC — 50%. The field is developed on the basis of a subsoil use contract signed in April 1996.
The contract term is 25 years.
The Tengiz field (one of the world's largest fields) and Korolevskoye field that are part of the Tengiz project are located in the Atyrau region in Kazakhstan, 150 km away from the city of Atyrau.
LUKOIL joined the project in December 1997. The project's operator is Tengizchevroil LLP. Parties to the project include: Chevron — 50%, ExxonMobil — 25%, KazMunaiGaz — 20%, LUKOIL (Lukarco) — 5%.
The fields are developed under the agreement made in April 1993 effective for a period of 40 years. The total number of Tengizchevroil staff is around 3.5 thousand people.
Today, all the project's crude oil is shipped via the Caspian Pipeline Consortium (CPC).
Caspian Pipeline Consortium
The Caspian Pipeline Consortium (CPC) is the only privately owned mainland pipeline in Russia and Kazakhstan. The pipeline runs from the Tengiz field to Novorossiysk (Russia), crossing the Atyrau region in Kazakhstan and four constituent entities of the Russian Federation: the Astrakhan region, Republic of Kalmykia, Stavropol territory and Krasnodar territory.
Parties to the project include: OJSC Transneft – 31% (managing the interest held by the Russian Federation – 24% along with CPC Company – 7%); Republic of Kazakhstan – 20.75% (represented by KazMunaiGaz – 19%, and Kazakhstan Pipeline Ventures LLC – 1.75%), as well as Chevron – 15%, LUKOIL – 12.5%, ExxonMobil – 7.5%, JV Rosneft-Shell – 7.5%, Shell – 2%, ENI – 2% and Oryx Caspian Pipeline – 1.75%.
The project agreement was signed in December 1996, while the pipeline was commissioned in October 2001. The pipeline is over 1.5 thousand km long and 1,020 mm in diameter. Its capacity is to 67 mln t per day. The CPC’s oil quality bank ensures that the Company’s selling prices reflect the high quality of its crude.
- LUKOIL in the Republic of Kazakhstan
Development of the Kandym group of fields is one of the Company's top priority projects. The key facility of the Kandym project is 8 bcmpa gas processing complex, one of the largest in Central Asia. The complex was designed for gas desulfurization and production of marketable gas, stable gas condensate, and marketable sulfur.
In February 2009, LUKOIL joined WEEM Extension project in Egypt (the block is located next to the WEEM block in the northeast). Project participants: LUKOIL- 50% (operator), Tharwa Petroleum - 50%.
Block exploration commitments were performed, which included wildcat drilling and 3D seismic surveying. Pilot operations commenced in 2010, and at that time a 20-year development license was obtained.
LUKOIL is participant to the Meleiha project in the Western Desert of Egypt, the contract is valid until 2024. Meleiha is one of PJSC LUKOIL's first international production projects. The Company joined it in 1995. Project participants: ENI - 76% (operator), LUKOIL - 24%.
Following intense additional exploration efforts, including 3D seismic surveys and exploratory drilling, several highly productive fields were discovered within the block – North Nada and Gavaher (2007), Arkadia (2010), Emri Dip (2012), Rosa North (2013), and Meleiha-West (2014).
LUKOIL is now implementing WEEM (West Esh El-Mallaha) production project in Egypt (the Eastern desert, in the vicinity of Hurghada). Project participants: Egyptian General Petroleum Company (EGPC) - 50%, LUKOIL - 50%. Production operations have been conducted at the block since 1998. After joining the project in 2002, LUKOIL has ensured quick incremental development of the fields (more than 12 times vs. the first two years of operations).
As part of the WEEM project, a number of infrastructure facilities were constructed, including a tank battery with a total capacity of 9 thousand m3 and a 100 km long export pipeline that connected the block's fields with the oil loading terminals Ras Al-Bihar and Gebel Al-Zeit on the west coast of the Red Sea.
- LUKOIL in the Republic of Egypt
License block PL 719 with a total area of around 600 km2 includes blocks 7321/8 and 7321/9 located in the Fingerdjupe basin in the western part of the Barents Sea. The water depth at the blocks varies from 430 to 490 meters.
Year of joining the project: 2013
Parties to the project include: British Centrica — 50% (operator), LUKOIL — 30%, Norwegian North Energy — 20%.
Processing and interpretation of 3D seismic data, and biostratigraphic surveys were conducted at PL 719 block, the oil and gas bearing system and the faults conductivity were analyzed.
approval was received to extend the initial exploration stage.
PL 858 license block with a total area of 1,432 km2 includes blocks 7234/3,6 and 7235/1,2,3,4,5 located in the eastern part of the Norway sector of the Barents Sea (Fedynskiy uplift). The average sea depth is 230 meters.
Year of joining the project: 2017
Parties to the project include: Aker BP — 40% (operator), LUKOIL — 20%, Statoil Petroleum — 20%, Petoro — 20%.
The 2017 exploration works included: interpretation of 3D seismic data, choice of target objects for drilling, approval of the 7234/6 exploration well location, ecological data research and engineering surveys of the seabed. A well preparation and design is being conducted.
- LUKOIL in the Kingdom of Norway
In June 2014, LUKOIL joined the deep-water offshore project in the Etinde block on the Cameroon shelf in West Africa (the deal was closed in March 2015).
The block with an area of 460 km2 is located in the Cameroonian waters of the Gulf of Guinea, 20 km offshore right near the border with Equatorial Guinea. Water depth at the block ranges between 75 and 10 meters.
It is developed on the basis of a product-sharing agreement (PSA) signed in December 2008. In July 2014, a 20-year license was obtained for the development of the Etinde block. Parties to the project include: New Age Ltd. — 30% (operator), LUKOIL — 30%, EurOil Ltd. (Bowleven) — 20%, and Societe Nationale des Hydrocarbures, a Cameroonian National Company — 20%.
2018 two prospecting and appraisal wells were drilled, the deposit area was
updated, an oil flow was received, the geological model was updated, reserves
calculation was performed.
The Trident block (EX-30) is located in the Romanian sector of the Black Sea at the depths of 90 to 1,200 meters. Distance from the shore: 60 to 120 km, the closest major port is Constanta.
Production shares are divided as follows: LUKOIL — 87.8% (operator), Societatea Nationale de Gaze Naturale Romgaz S.A. — 12.2%.
In February 2011, following the bidding process completed in July 2010, the Consortium to which PJSC LUKOIL is a party signed a concession contract with the Romanian National Agency for Mineral Resources for exploration and development of the block. LUKOIL Overseas opened an office in Bucharest in May 2011 to manage the project. The agreements were ratified by the Romanian Government in October 2011.
In 2012, 3D seismic surveys were conducted at the block across the area of 2 thousand km2. From November 2014 till October 2015, jointly with its project partners, LUKOIL implemented a drilling program for wildcats.
In October 2015, following the drilling of Lira-1X wildcat at Lira offshore structure located at the Trident block, a major gas field was discovered. The well was mothballed, and tests are to be carried out therewith to estimate the discovery potential. Based on preliminary analysis of the drilling and geophysical survey data, Lira-1X delivered a productive interval with an effective gas-saturated thickness of 46 meters. According to seismic data, the area of the gas field can reach up to 39 km2.
Success of the Lira-1X well helped mitigate the risks inherent to further exploration of a number of promising exploration targets with significant resource potential, both located in the vicinity of Lira and at other block sites. In
2018 the project strategy was optimized and approved, the works on receiving
approval from Romanian government for deepwater drilling are being carried out.
In September 2014, LUKOIL joined the offshore deepwater project at OML-140 block on the Nigerian shelf in West Africa (the accession was closed in September 2015). The block with an area of more than 1.2 thousand km2 is located in the Nigerian waters of the Gulf of Guinea, 135 km away from the coast. Water depth at the block ranges from 1.2 to 2 thousand meters.
In June 2009, a 20-year license was granted for the development of the block. Chevron (Star Ultra Deep Petroleum) acts as a project operator. Parties to the project include: NNPC, a Nigerian company, — 30%, Star Ultra Deep Petroleum (STAR) — 27%, ONG — 25%, LUKOIL — 18%.
The Nsiko field was discovered within the block as well as a number of promising structures.
In March 2014, LUKOIL joined the offshore deepwater project at the Tano block (Deepwater Tano/Cape Three Points) on the shelf of Ghana in West Africa (the deal was closed in October 2015). The Tano block's area is a little over 2 thousand km2. It is located in the western part of Ghana's water area in the Gulf of Guinea, 80 km offshore in the vicinity of the Cameroonian coast. Water depth at the block ranges from 1.6 to 3 thousand meters.
Seven hydrocarbon fields were discovered within the block: five oil fields and two gas fields.
The Amatitlan block occupies the area of 230 km2 and is located 68 km away from the city of Poza Rica, Veracruz state, Mexico. LUKOIL joined the project in July 2015. Petrolera de Amatitlán SAPI de CV (PdA) acts as a project operator. The Company's share is 50 percent.
The project is implemented in accordance with the service contract for hydrocarbon production. The produced hydrocarbons are the property of PEMEX. The oil produced here is shipped by motor trucks to the Soledad gathering system (30 km away from the Amatitlan block). Operator's hydrocarbon production services are provided on a cost reimbursement basis.
Blocks 10, 12, 14, 28
In June 2017, LUKOIL won the tender under the Second Licensing Round for Block 12. The Production Sharing Agreement was executed in September 2017 with CNH.
Block 12 is in the southern part of the Gulf of Mexico, 50km from the coast (Port of Torno Largo). The area of the block is 521 square kilometers.
In March 2018, LUKOIL in a consortium with the Italian company Eni has been awarded the contract right to the Block 28. The underwriting share of LUKOIL will be 25%. Eni will be the Operator of the license with a 75% stake in the joint venture. The Block is located in the Gulf of Mexico offshore, in water depths between 20 and 500 m.
In November 2018, LUKOIL and Eni signed Farm-Out Agreement on Blocks 10, 12 and 14 in the Mexico's shallow waters. According to the Agreement, LUKOIL assigns 40% in Block 12 to Eni, retains the remaining 60% stake and remains the operator of the project. In its turn, Eni assigns 20% in Block 10 and 20% in Block 14 to LUKOIL, and remains the operator of both projects.
- LUKOIL in the United Mexican States