Lukoil Acquires Three Exploration Assets in West Africa

Russian oil producer OAO Lukoil Holdings (LKOH.RS) has signed an agreement with American oil and gas company Vanco Energy to acquire a 56.66% share in three exploration projects on prospective offshore blocks in the Gulf of Guinea in west Africa, Lukoil said Thursday.

Two of the blocks, CI-101 and CI-401, are located offshore in Cote d'Ivoire. The Cape Three Points Deep Water block is located offshore the Republic of Ghana.

Like block CI-205, located in Cote d`Ivoire and acquired by Lukoil in 2006, all the three blocks are located in the deepwater area of the Gulf of Guinea, about 50 to 100 kilometers from the coast.

Exploration of blocks CI-101 and CI-401 is carried out under the Production Sharing Agreement signed in September 2005.

The exploration period is 5.5 years and includes acquisition and reprocessing of existing 2D seismic data and 3D seismic surveys, as well as drilling of one exploration well on each block.

Exploration on Cape Three Points Deep Water block is carried out under the Petroleum Agreement signed in August 2002. The exploration period is 7 years and includes reprocessing of existing 2D seismic data and 2D and 3D seismic surveys, now completed. In 2008, the drilling of one exploration well is planned on the block.

The deal is planned to be closed in the middle of the current year.

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