Lukoil overseas increases oil production by 2.4 times in 2014

LUKOIL’s Balance Commission reviewed the 2014 operating results of LUKOIL Overseas.

Hydrocarbon production set a new record for the history of LUKOIL Overseas, totaling 112 million barrels of oil equivalent (boe). A total of 9.6 million tonnes of oil (2.4 times the level of 2013; the increase was due to the start-up of the West Qurna-2 field in Iraq) and 6.8 billion cubic meters (bcm) of gas were produced. This boosted the share of LUKOIL Overseas in LUKOIL's total oil production from 4.4% in 2013 to 10% in 2014, and its share in total hydrocarbon production from 9.5% to 13.3%.

Proved, probable and possible reserves audited by Miller and Lents (USA) totaled around 2 billion boe as of 1 January 2015, and contingent resources of all categories exceeded 0.7 billion boe. Production was fully replaced by an increase in proven reserves, mainly from additional exploration of the Gissar, Kandym (Uzbekistan) and Shah Deniz (Azerbaijan) fields.

The most significant events of 2014 were the commissioning of the West Qurna-2 field and the beginning of investment recovery for the project via compensation oil exports (more than 30 million barrels shipped by the end of the year). The field produced 11 million tonnes of oil in 2014 (6.1 million tonnes for LUKOIL's share), which exceeded the plan by 6%.

The implementation of major gas projects in Uzbekistan continued. In particular, a booster compressor statıon was started up in November at the Khauzak-Shady field, allowing for a 20% increase in production. The Early Gas Kandym large capital project entered an active phase; work was underway on design documentation development, equipment fabrication and delivery, as well as early construction under the Gissar Full Development project. The annual production at the fields in Uzbekistan totaled 4 bcm of gas and over 100,000 tonnes of liquid hydrocarbons.