Lukoil Successfully Completes 1st Exploration Well on Anaran

Drilling of the first exploration well on the Anaran onshore exploration project in Western Iran implemented jointly by Norsk Hydro and LUKOIL Overseas has been completed successfully.

The well was drilled on the Azar prospect to design depth of about 4,800 meters. A number of modern technologies and technical solutions were applied during drilling. The National Iranian Oil Company (NIOC) acted as the drilling contractor. The cost of the well is over $ 20 million. The well is currently being tested to assess productivity.

The contract covering the entry of LUKOIL Overseas into the Anaran project was signed on February 14, 2003. After approval by NIOC on September 26, 2003 the contract entered into effect. The interest of LUKOIL Overseas in the contract is 25%, and Norsk Hydro's stake is 75%.

Four prospects, Azar, Western Changuleh, Dekhloran and Musian, were identified at the Anaran block. Projected recoverable oil reserves of the block are estimated at approximately 1 billion barrels. The fixed work program covers the drilling of five exploration wells.