Lukoil submits gas plan to Saudi ministry

03 March 2009
Lukoil Saudi Arabia (Luksar), the joint venture between Saudi Aramco and Russia’s Lukoil, has submitted an appraisal plan for two discoveries to the Ministry of Petroleum & Mineral Resources after completing a nine-well drilling programme in the kingdom’s Empty Quarter.

A source close to the venture says it has submitted two separate finds: its discovery at the Tukhman structure in the North Rub al-Khali in early 2007 and a discovery late in 2008, which is thought to be at the Fadil structure.

The Tukhman find has an estimated potential of about 620 million barrels of oil equivalent.

It is unclear if Luksar has applied for a one-year extension to its exploration programme as the formal deadline for its five-year drilling schedule passed in January 2009.

In 2009 the ministry lengthened the contract for the South Rub al-Khali (Srak) consortium, a joint venture between the UK/Dutch Shell Group and Aramco, after Srak blamed terrorist activities in the kingdom in 2004 for putting its exploration activities behind schedule (MEED 24:8:07).

Two other ventures have submitted similar requests. They are Sino Saudi Gas, a joint venture of China's Sinopec and Saudi Aramco; and Enirepsa which includes Italy's Eni, Spain's Repsol and Aramco (MEED 16:11:07).

The ministry is concerned about the lack of success on the exploration programme in the Empty Quarter.

It had suggested that the consortiums could collectively produce up to 2 billion cubic feet a day of gas by 2011 (MEED 11:4:08).

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