09.10.2012 Further re Block 10 Project in Iraq

IRAQI GOVERNMENT APPROVES BLOCK 10 CONTRACT

The Iraqi Government has approved the geologic exploration, development and production contract for Block 10 located in the southern part of the country in Di-Kar and Mutannah provinces.

In June of 2012, based on the licensing round results, the consortium formed by LUKOIL Overseas (an OAO LUKOIL subsidiary) and the Japanese INPEX Corporation obtained a license to operate in Block 10 which covers an area of 5,500 square km. LUKOIL Overseas will have a 60% (operator) stake in the project with INPEX, the remaining 40%. South Oil Company will represent Iraqi authorities in the contract. The document is expected to be signed in November of 2012.

The development of Block 10 will result in a synergistic effect due to the block's location a mere 100 km away from the West Qurna-2 field developed by LUKOIL Overseas.