01.06.2012 Re Block 10 Project in Iraq

LUKOIL ENTERS NEW PROJECT IN IRAQ

 

Based on the results of the forth licensing round in Iraq, LUKOIL Overseas (a wholly owned subsidiary of OAO LUKOIL) jointly with Japan’s INPEX Corporation, is now entitled to exploration Block 10 in Southern Iraq.

Block 10 covers an area of 5,500 square kilometers and is located 120 km to the west of the city of Basra. It is in this region of huge oil reserves that international oil majors are developing largest oil fields, including Rumaila, West Qurna-1, West Qurna-2 and Al-Gharraf. LUKOIL Overseas, the operator, has a 60% share and INPEX, 40%. The winning bids were: a remuneration fee of USD 5.99 per barrel of oil equivalent, a signature bonus of USD 25 million, a mandatory minimum exploration program which includes a 1,375-kilometer 2D-seismic acquisition and the drilling of one exploration well, and also a minimum expenditure of USD 100 million. Detailed conditions of the oil agreement for Block 10 will be further discussed with the Government of Iraq.