Lukoil and PDVSA Complete Junin-3 Phase 1 Reserve Estimate

Specialists from LUKOIL Overseas and the Intevep technological institute (a unit of PDVSA) have completed the first phase of joint studies to produce a quantitative estimate of hydrocarbon reserves of the Junin-3 block, which has an area of 678 square kilometers and is located in the Orinoco extra heavy oil belt.

The estimation and certification program is being carried out under the agreement between LUKOIL Overseas and CVP (PDVSA's subsidiary in charge of international cooperation) signed on October 12, 2005.

Reports on the geological, hydrodynamic, seismic and petrophysical sections were delivered by experts from both countries during the presentation of the first phase of the project. As result, the work provided comprehensive substantiation of the potential of Junin-3 was provided as one of the key blocks of a vast and as yet undeveloped petroleum province.

The results of the work were unanimously accepted and approved. The steering committee of the project extended its gratitude to the Russian and Venezuelan specialists who prepared the detailed information on the issue. It was noted that the Russian-Venezuelan group was the first of the international teams invited to the region to complete the starting phase.

The second phase of the Junin-3 projects is next. Its objective is to jointly clarify the geological model based on new seismic data and drilled wells and compare this data with the results obtained on neighboring blocks. Certification of reserves in the region by an independent expert commission is planned for the first quarter of 2007.