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 2017
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.
3D seismic works covering 678 square km were held at the Khazri and Titonskaya structures to define more precisely their geology and identify prospects. Following the 3D seismic interpretation, the resource base will be estimated and the exploration well drilling site at the Khazri structure will then be determined.
The Company completed additional exploration at the Yu. Kuvykin field and drilled Sarmatskaya-4, a 3,363-meter exploration well. The geological structure of the field's southern part was defined more precisely, which led to an upward revision of its gas and condensate reserves. The Company completed drilling of a 3,842-meter prospecting well at the Yuzhnaya structure, and a survey in the open hole confirmed the productivity of Jurassic deposits.
The Company has unparalleled expertise in the Baltic Sea operations, which minimizes the risks associated with new field development and shortens new project lead times. The proximity to export markets and the Company's own transportation infrastructure reduces the transportation expenses and improves the cost efficiency of operations in the region.
In the reporting period, LUKOIL completed the construction of 2,350-meter prospecting well No. 3 at field D33. As a result, the geological structure of the field discovered in 2015 was confirmed. The Company appraised the field's commercial hydrocarbon reserves, and preparations for the design of the development stage commenced.
The 3D seismic data interpretation was completed and used to update resource estimates for the Baltic Sea fields discovered in 2015 and other prospects.
Most international exploration activities were concentrated at Block 10 in Iraq (LUKOIL as a project operator and INPEX CORPORATION holding 60% and 40%, respectively).
Following the drilling of prospecting wells No. 2 and 3, the geological model of previously discovered large Eridu field was confirmed and gushing oil flows at a rate of over 1,000 cubic meters per day were produced.
The Eridu field is the largest discovery made in Iraq for the last 20 years. In the medium term, appraisal drilling and 3D seismic surveys have been scheduled as part of the exploration program of the Eridu field.
The subsoil use license for Block 12 was acquired in 2017 following the 2.1 licensing round in Mexico. LUKOIL is the project operator. The block is situated 50 km offshore in the south of Gulf of Mexico. Its area is 521 square km with an average sea depth of 200 meters. The block is located in the proximity to the recently discovered large Zama field that further raises its success potential. A range of prospects at the block were identified following the 3D seismic surveys.