Lukoil to Finalize Deal for Two Egyptian Blocks Soon

Later this week Lukoil will sign two new oil concession agreements with Egypt for the West Geisum and North East Geisum Blocks located in the Gulf of Suez. Estimated reserves for these two concessions are reported to be 423.8 million barrels. Lukoil will be the sole operator for the two blocks. "We recently won the tender for these two blocks and soon we will sign the concession agreements...The maximum forecast reserves in the two blocks is 423.8 million barrels of oil," a Lukoil official said.

The Russian oil major is also the sole operator of a block in Egypt's Eastern Desert near Hurghada and jointly operates another concession in the Western Desert with Agip. The Lukoil official said the company is ready to invest $27.8 million on the initial exploration phase and will drill a total of 40 wells on both blocks. The West Geisum concession covers and area of 93.86 square kilometers and is shown to have five oil formations and one gas formation, with total forecast hydrocarbon reserves of 16.8 million tons. The North East Geisum block covers an area of 81.64 square kilometers and shows three hydrocarbon formations with forecast reserves of 15.9 million tons.