LUKOIL OVERSEAS OPENS OFFICE IN TEHRAN

MOSCOW, August 26 (RIA Novosti) - LUKoil Overseas Anaran Ltd. (a subsidiary of the Russian oil company, LUKoil) has opened an office in Tehran, the capital of Iran. The purpose of the office is to supervise the Anaran onshore exploration project in western Iran, LUKoil Overseas, said in a press release.

The Anaran project is a joint project comprising Norwegian Norsk Hydro (75%) and the LUKoil Overseas (25%). LUKoil Overseas signed a contract on its involvement in the project on February 14, 2003. After it was approved by the National Iranian Oil Company (NIOC), the contract came into force on September 26, 2003.

The Anaran block contains three exploration targets: Azar, Shagule and Musian. The forecasted combined oil reserves amount to about 900 million barrels. The companies are obliged drill five prospective wells on the block before October 2005.

Presently, the first prospecting well is being drilled and has already reached half of the planned depth (4,870 metres). The work to cement and lower a 20-inch in diameter casing string has been successfully completed. NIOC is the contractor for the drilling work.