LUKOIL LAUNCHES DEVELOPMENT OF INTEGRATED INFORMATION SYSTEM FOR OIL RESERVOIR PROSPECTING AND ENGINEERING

Monday, June 19, 2000

Ravil Maganov, First Vice President of LUKOIL, and Alexander Dzhaparidze, President of PetroAlliance service company, have signed a contract to develop an integrated corporate network for oil and gas reservoir prospecting and engineering in Moscow today.

This corporate system will enable LUKOIL subsidiaries to significantly increase efficiency of geo-data utilization, to expand a sphere of application of computer modelling and electronic cartography. It will enable a more extensive 3D seismic technology utilization as well as reservoir monitoring and production optimization. Geo-data display image will allow highly qualified professionals to make group decisions by means of on-line conferences.

LUKOIL aims at bringing all up-to-date information technologies to a field site. As a result, application of new technologies will increase reservoir engineering efficiency and accuracy of proven reserves evaluation and reduce exploration and development costs.

Ravil Maganov, First Vice President of LUKOIL, said at the signing ceremony: "The integrated corporate reservoir prospecting and engineering system will have a number of unique characteristics, some of which are unparalleled in the world. First of all, I would like to stress its scope. A practically momentary access to all necessary data regardless its location will be provided from the Company headquarters. Thus, a full transparency of all business processes in the sphere of reservoir prospecting and engineering will be ensured within the whole territory operated by LUKOIL, not only in Russia but abroad.