Lukoil Makes Oil Find in Colombia's Condor Block

LUKOIL Overseas has discovered oil reserves in the amount of more than 100 million barrels at Medina structure of the Condor exploration block in Colombia.

This the first discovery made by Russian petroleum experts in the Western hemisphere.

This field is being prepared for commercial operations. However the project has already started generating commercial benefit: about 4 thousand barrels of high-quality Colombian oil of Vasconia blend produced in the course of Condor-1 well testing were sold to North American consumers.

The Condor project is implemented by LUKOIL Overseas (70%) together with Ecopetrol National Oil Company (30%). The Agreement on Condor block was signed on April 7, 2002. The contract covers exploration operations at the block over a period of six years and field development over 22 years in case of a commercial discovery. Project operator - LUKOIL Overseas Colombia Ltd.

The Block area is 3089 sq. km. It is located in the western part of the Llanos oil basin and is one of the largest exploration blocks in Colombia.

The drilling of deep exploratory well Condor-1 with elevation of the well site at 1128 m above the sea level started in June 2005. The depth of vertical well drilled in the dome of Medina structure was 4.5 thousand meters.

In February 2007 the Executive Board of LUKOIL accepted the report of LUKOIL Overseas on the results of international exploration projects in 2001-2006 and approved the strategic directions for development of international exploration activities for the period from 2007 to 2016.

International exploration development strategy of LUKOIL for 2007-2016 implies the creation of portfolio consisting of 17 exploration projects and increment of C1 hydrocarbon reserves in the amount of 1.9 billion boe.