Lukoil Oil Makes Discovery on Anaran Block in Iran

A major discovery was made on the Anaran exploration block in west Iran, which could become one of the most significant oil finds over the past several years.

The Anaran field was discovered as result of testing of the exploration well drilled on the Azar structure, which produced commercial crude in July 2005. Exploration operations on the block are continuing with the Changuleh-West well currently in drilling.

A commercialization report has been submitted to the National Iranian Oil Company (NIOC). After its approval the parties will started negotiating a contract to develop the field. NIOC is expected to review the report by March 2006.

The contract covering the entry of LUKOIL Overseas into the Anaran project was signed on February 14, 2003 and entered into force on September 26, 2003 after NIOC sanction. The interest of LUKOIL Overseas in the contract is 25%, with Norsk Hydro's stake at 75%.

Four prospects, Azar, Changuleh-West, Dehloran and Musian, have identified at Anaran block. Projected recoverable oil reserves of the block could reach 1 billion barrels. The mandatory work program includes drilling of five exploration wells. Specialists from Norsk Hydro that by 2010 Anaran could be producing up to 100,000 barrels per day.