Geological exploration work by companies of LUKOIL Group in 12
countries around the world is focused on replacement of production with new
commercial reserves of hydrocarbons, and preparation of reserves for rapid
launch and expansion of production in promising regions, both in Russia and
abroad. The Company uses the latest technologies in order to maximize efficiency
of its geological exploration work.
The largest part of geological exploration work to discover oil
and gas was in districts of Western Siberia, the Timan-Pechora oil and gas
province, Perm Territory, the Volga, Astrakhan Regions, the offshore Caspian and
as part of foreign projects. Geological exploration work in other regions was
focused on preparation and reconnaissance of prospective new geological targets
and additional exploration at fields, which were discovered
earlier.
The Company carried out a substantial amount of 2D seismic work
in 2011 to locate and detail geological structures and to prepare for drilling
of prospecting and exploration wells, shooting a total of 6,061 km of 2D
profiles. Volumes of 3D seismic were 4,312 km2. Quality of our seismic work and
speed of processing and interpretation have improved in recent years,
particularly due to application of new computer technologies. High standards of
the Group’s seismic work are demonstrated by success rates of about 70% in
prospecting and exploration drilling.
LUKOIL completed 246.5 km of electrical exploration in 2011.
Vertical seismic profiling, which enables detailing of geological structure
around an existing well, was carried out at 15 wells. Total exploration drilling
in 2011 amounted to 159,000 m, and efficiency was at a high level of 1,076
tonnes of conditional fuel per meter. A total of 48 prospecting and exploration
wells were completed in 2011, of which 33 were productive.
Group companies discovered 6 fields in 2011
(Vostochno-Lambeishorskoye in the Komi Republic, Nikulinskoye in Perm Territory,
Yuzhno-Eityanskoye in Western Siberia, Yuzhno-Stanovoye and Yurevskoye in
Volgograd Region, and Independance in Cote d’Ivoire), as well as 20 new deposits
at fields that are already in development.
Increase of proved reserves under SEC classification through
geological exploration and additional information obtained in the course of
production drilling amounted to 612 million boe. Organic growth of proved oil
reserves was 516 million barrels (99% of the total growth) and 4 million barrels
at the international projects (1%). Gas reserve growth in Russia amounted to 310
billion cubic feet (56% of the total gas growth) and 240 billion cubic feet in
the international projects (44%). Spending by LUKOIL Group on geological
exploration work in 2011 was $873 million including share in equity
affiliates.
Russia
Total 121,000 meters of exploration drilling was carried out in
Russia during 2011, 2D seismic exploration was 5,463 km and 3D seismic was 4,309
km2. Spending on geological exploration in Russia was $366
million.
International Projects
The main task of geological exploration by the Company outside
Russia is to prepare the resource base for rapid launch of production.
Exploration drilling in international projects with LUKOIL participation was
37,855 meters in 2011. 2D seismic work in international projects in 2011 totaled
598 km and 3D work was 3.98 km2. Spending on geological exploration outside
Russia was $507 million.
LUKOIL was involved in geological exploration drilling in 11
countries outside Russia by the end of 2011: Kazakhstan, Saudi Arabia, Egypt,
Uzbekistan, Romania, Vietnam, Colombia, Venezuela, Cote d’Ivoire, Ghana and
Sierra Leone. A total of 11 wells were completed during 2011 as part of these
projects, of which three were productive.
