Lukoil Overseas Begins Drilling at Condor Block in Colombia

Lukoil Overseas began exploration on the Condor project (Medina structure), operated by LUKOIL Overseas (70%) and Ecopetrol National oil company (30%).

The contract on Condor bock was signed on April 7, 2002 between LUKOIL Overseas and Colombian National oil company, Ecopetrol. The contract includes exploration activities at the block within 6 years and in case of a commercial discovery, development of the field for 22 years. The Block coveras and area of 3,089 square kilometers. Condor is located in the foothills of Eastern Cordillera in the western part of Llanos oil basin and is one of the largest exploration blocks in Colombia. Previously, 2D seismic survey has been performed at the block area (LUKOIL Overseas has reprocessed 2300 m of seismic lines and reinterpreted the obtained data) and 4 wells have been drilled.

Condor-1 well is located in the dome of Medina structure. Recoverable hydrocarbon reserves of Ñ3 category: oil - 3,4 mmt, gas condensate – 10 mmt, free gas – 78,5 bscm. Design depth of the vertical well is 5050 m, the point of drilling is located at 1128 m above sea level.

In summer 2004 the environmental impact assessment has been completed jointly with Auditorio Ambiental, a Colombian company, after which the Ministry of Natural Resources of Colombia has granted LUKOIL Overseas with a well drilling license.

The drilling rig contract was signed with Nabors International, based on tender results. Drilling is expected to take approximately 10 months.