LUKOIL Group carries out exploration works with the purpose of expanding the resource base.
Exploration activities have been consistently delivering good results driven by the advanced exploration techniques and selection of the most promising areas based on research results.
KEY EXPLORATION PROJECTS IN 2018
One of the Company's priorities is further exploration works in the Caspian Sea given the potential synergies with the prior field discoveries in the region. In 2017, the Company completed the construction of Khazri-1, a 4,780-meter prospecting well in the southern part of the Central Caspian license area.
In 2018, we started building a seismic model for the key prospective horizons of the Yuzhnaya structure based on comprehensive interpretation of seismic data as well as data from well No. 1, drilled in 2017.
3D seismic surveys covering 772 square km were conducted at the Khazri, Titonskaya and Druzhba structures to more precisely define their geology and identify prospects. Following 3D seismic interpretation, the resource base is planned to be estimated to finalize exploration well placement point on the Khazri structure.
In West Siberia, we focused on exploring the Tyumen formation and Achimov deposits to identify hydrocarbons in stratigraphic traps. 3D seismic surveys were conducted to update our geological models of field boundaries as well as further hydrocarbon exploration to prepare sites for production drilling. Lowpermeability reservoirs were also explored.
In Timan-Pechora, exploration focused mainly on the Denisovskaya Depression, where two highly productive oil fields (Verkhne-Ipatskoye and Prokhorovskoye) were discovered during the year. The new fields confirmed positive outlooks on further exploration within the Denisovskaya Depression.
Most of our international exploration activities in 2018 were concentrated at Block 10 in Iraq (LUKOIL holding 60% as project operator and INPEX CORPORATION holding 40%). 3D seismic surveys were conducted at Block 10 within the approved exploration program, with a fourth well drilled to completion at the large discovered Eridu field, producing a commercial flow of dry crude oil. The surveys confirmed the field's current geological model and expanded the oil-bearing area in the Mishrif Formation. In the medium term, several more appraisal wells are planned for drilling and testing, along with more 3D seismic surveys to finalize the field's reserves estimate. 2D seismic surveys are planned to be completed within the remaining area of Block 10 to determine further targets for exploration.
Two prospecting wells were drilled and completed, producing an oil flow and further delineating the reservoir area at the Etinde project offshore Cameroon in West Africa (LUKOIL – 30%, New Age as operator – 30%, EurOil – 20%, and Société Nationale des Hydrocarbures, the National Hydrocarbon Company of Cameroon – 20%). The field's geological model was also updated and its reserves estimated.
