LUKoil and Norsk Hydro to Carry out Exploration Work Together

Ravil Maganov, LUKoil's first vice president, and Morten Ruud, the president of Exploration and Production International, a subsidiary of Norwegian Norsk Hydro, today signed a protocol of intentions in Moscow. According to LUKoil press office, the document entails developing partner relations between the companies in carrying out a number of joint projects. One project is connected with developing the Kharyaginskoye oil field in the Timan-Pechora oil and gas province in the Komi Republic.

Today, LUKoil Overseas Holding (which runs LUKoil's foreign projects) and Norsk Hydor also signed a contract to include LUKoil Overseas in a project to explore the promising Anaran block, located in the west of Iran. Three promising structures have been identified in the Anaran block - Azar, Shangule, and Musian. Potential oil reserves in the block are estimated at around 350 million tonnes. The total budget for the project is USD 137.3 million. Exploration work will continue up to 2005. According to LUKoil's press office, the contract has to be approved by Iran's national oil company. If approval is given, LUKoil Overseas will acquire a 25% stake in the project.

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