ANNUAL REPORT 2005 - Lukoil

More documents

Recommendations

Info

Khanty-Mansiysk Autonomous District The Khanty-Mansiysk Autonomous District remains the chief oil production region for LUKOIL. Geological exploration work in the region is mainly focused on reserve replacement in order to maintain the Group's current production levels in the region. In 2005 the Company's proved reserves of oil in the region taking account of production grew by 465 million barrels, or by 5.4% y-o-y. EXPLORATION & PRODUCTION Four new structures with forecast reserves of about 30 million barrels were added in 2005 as a result of 2D seismic exploration work. 3D seismic exploration work on the license areas led to a complex reinterpretation of seismic data, resulting in specification of the geological models of the fields developed by the Company. For example, seismic data for the South Yagunskoye field showed greater extent of oil-bearing strata and oil-saturated rock. Closer study of geological structure and characteristics of the Povkhovskoye field increased proved reserves of the field by 21% to 842 million barrels of oil. Prospecting and exploration drilling in the region in 2005 totalled 44,000 meters. The main positive results were in well testing at the North Danilovsky license area, which gave daily oil flow of 874 barrels. Also, a daily oil flow of 464 barrels was achieved in testing of an exploration well at the East Lazarevskoye license area. A gushing daily flow of 906 barrels of water-free oil was obtained from an exploration well at the Okunevaya structure in the eastern part of the Las- Yegansky license area. Geological exploration works in 2005 led to discovery of six oil deposits at the Povkhovskoye field, and one deposit apiece at the Pokachevskoye, Malokartopyinskoye and Lovinskoye fields. International Projects Exploration drilling in international projects totalled 12,000 meters in 2005, 2D seismic exploration was 1,700 km and 3D seismic was 3,530 km 2 . Geological exploration expenses as part of international projects were $171 million. The main purpose of LUKOIL geological exploration work abroad is to prepare a resource base for rapid organization of production, in line with the Group's strategy for transformation into a global energy company. At the start of 2005 the Company was a participant in nine geological exploration projects outside Russia: D-222 (Azerbiajan); Condor (Columbia); Anaran (Iran); West Geisum and North-East Geisum (Egypt); Tyub-Karagan and Atashsky (Kazakhstan); Block A (Saudi Arabia); and Kandym – Khauzak – Shady (Uzbekistan). 25
ANNUAL REPORT, 2005 In 2005 LUKOIL began implementation of a project for measurement and certification of reserves at heavy oil fields located within Junin-3 block (Venezuela). The block area is 640 km 2 and the agreement is for three years. When studies have been completed talks will begin between LUKOIL and CVP (a division of the national oil company PDVSA) on development of the Junin-3 fields. Also in 2005 LUKOIL acquired the company Nelson Resources Limited, which has an option agreement to acquire 25% interest in two geological exploration projects on the Caspian Shelf: South Zhambai and South Zaburuniye (both 100% owned by KazMunaiGaz). By the end of 2005, therefore, LUKOIL was a participant in ten international geological exploration projects and had options to obtain stakes in two more projects. Drilling of the first exploration well, Azar-2, was completed as part of the Anaran project in Iran, which is being carried out jointly with the Norwegian company, Norsk Hydro. The well was drilled at the promising Azar structure, to final depth of 4,800 meters. Testing of the well gave oil flows from five intervals at daily rates from 2,214 to 3,044 barrels. Commercial value of the discovery was confirmed and negotiations began with the National Iranian Oil Company (NIOC) on the start of field development. The field is one of the most significant discoveries in the global oil industry in recent years. Reserves discovered as part of the project are not shown on the Company balance sheet, since activities at Anaran are under a service agreement. In Columbia deep exploration drilling was begun at the Medina structure, which is part of the Condor block. The project is being implemented by LUKOIL and Ecopetrol (the Columbian national oil company). 3D seismic exploration has been previously carried out at the block. Planned depth of the vertical well is 5,000 meters and it is located 1.1 km above sea level. Two wells, Shege-1 and Shege-2, at a part of the Kungradsky block in Uzbekistan, were acquired, recommissioned and tested as part of the Kandym – Khauzak – Shady project. Shege-1 well gave a commercial flow of gas with daily yield of 12.3 million cubic feet. Seismic work began and pre-project 26
Page 1 and 2: ANNUAL REPORT 2005
Page 3 and 4: ANNUAL REPORT, 2005 ADDRESS TO SHAR
Page 5 and 6: ANNUAL REPORT, 2005 LUKOIL signific
Page 7 and 8: LUKOIL IS ONE OF THE MAJOR INTERNAT
Page 9 and 10: The Company buys 15 filling station
Page 11 and 12: August The first stage of a coke ca
Page 13 and 14: LUKOIL completes eradication of the
Page 15 and 16: 289 filling stations and 132 diesel
Page 17 and 18: ANNUAL REPORT, 2005 LUKOIL is reali
Page 19 and 20: ANNUAL REPORT, 2005 GEOLOGICAL EXPL
Page 21 and 22: ANNUAL REPORT, 2005 Russia Total ex
Page 23: ANNUAL REPORT, 2005 Western Siberia
Page 27 and 28: ANNUAL REPORT, 2005 Distribution of
Page 29 and 30: ANNUAL REPORT, 2005 LICENSING The C
Page 31 and 32: ANNUAL REPORT, 2005 increased by 1.
Page 33 and 34: ANNUAL REPORT, 2005 Creation of the
Page 35 and 36: ANNUAL REPORT, 2005 Gas Production
Page 37 and 38: KAZAKHSTAN Kumkol 50% LUKOIL INTERN
Page 39 and 40: ANNUAL REPORT, 2005 Main oil export
Page 41 and 42: 47.6 REFINING, PETROCHEMICALS AND M
Page 43 and 44: Russia Growth of export duties in 2
Page 45 and 46: The catalytic reforming unit was ov
Page 47 and 48: GAS PROCESSING The Company's gas-pr
Page 49 and 50: up to 200,000 tonnes of caustic sod
Page 51 and 52: LUKOIL bought share stakes in 2005,
Page 53 and 54: Trading with third parties LITASCO
Page 55 and 56: ANNUAL REPORT, 2005 Effect from EOR
Page 57 and 58: TRADE BALANCE OF LUKOIL SUBSIDIARIE
Page 59 and 60: ANNUAL REPORT, 2005 Work by LUKOIL
Page 61 and 62: ANNUAL REPORT, 2005 management of t
Page 63 and 64: ANNUAL REPORT, 2005 as investments
Page 65 and 66: ANNUAL REPORT, 2005 AA 1000 standar
Page 67 and 68: ANNUAL REPORT, 2005 took part in cr
Page 69 and 70: CORPORATE GOVERNANCE The Company vi
Page 71 and 72: THE MARKET FOR COMPANY SECURITIES R
Page 73 and 74: than in the first quarter of the ye
Page 75 and 76:
Alexander Shokhin Independent Direc
Page 77 and 78:
Vagit Sharifov Vice-President, Head
Page 79 and 80:
The general meeting of shareholders
Page 81 and 82:
the Group's organizations and struc
Page 83 and 84:
ANNUAL REPORT, 2005 Projects of LUK
Page 85 and 86:
ANNUAL REPORT, 2005 Fields and lice
Page 87 and 88:
ANNUAL REPORT, 2005 erves were not
Page 89 and 90:
ANNUAL REPORT, 2005 The company's r
Page 91 and 92:
FINANCIAL ACCOUNTS MANAGEMENT'S DIS
Page 93 and 94:
FINANCIAL ACCOUNTS Strategic Partne
Page 95 and 96:
FINANCIAL ACCOUNTS The table below
Page 97 and 98:
FINANCIAL ACCOUNTS The mineral extr
Page 99 and 100:
FINANCIAL ACCOUNTS lack refining ca
Page 101 and 102:
FINANCIAL ACCOUNTS YEAR ENDED DECEM
Page 103 and 104:
FINANCIAL ACCOUNTS 2005 2004 Realiz
Page 105 and 106:
FINANCIAL ACCOUNTS Operating expens
Page 107 and 108:
FINANCIAL ACCOUNTS Excise and expor
Page 109 and 110:
FINANCIAL ACCOUNTS YEAR ENDED DECEM
Page 111 and 112:
FINANCIAL ACCOUNTS Sales revenue Sa
Page 113 and 114:
FINANCIAL ACCOUNTS Wholesale of ref
Page 115 and 116:
FINANCIAL ACCOUNTS The increase in
Page 117 and 118:
FINANCIAL ACCOUNTS Analysis of capi
Page 119 and 120:
FINANCIAL ACCOUNTS GUARANTEES, OFF-
Page 121 and 122:
FINANCIAL ACCOUNTS ing filed by the
Page 123 and 124:
FINANCIAL ACCOUNTS CRITICAL ACCOUNT
Page 125 and 126:
FINANCIAL ACCOUNTS CONSOLIDATED FIN
Page 127 and 128:
FINANCIAL ACCOUNTS OAO LUKOIL Conso
Page 129 and 130:
FINANCIAL ACCOUNTS OAO LUKOIL Conso
Page 131 and 132:
FINANCIAL ACCOUNTS OAO LUKOIL Notes
Page 133 and 134:
FINANCIAL ACCOUNTS Property, plant
Page 135 and 136:
FINANCIAL ACCOUNTS found a sufficie
Page 137 and 138:
FINANCIAL ACCOUNTS Investments in "
Page 139 and 140:
FINANCIAL ACCOUNTS members of the G
Page 141 and 142:
FINANCIAL ACCOUNTS Russian ruble bo
Page 143 and 144:
FINANCIAL ACCOUNTS The following ta
Page 145 and 146:
FINANCIAL ACCOUNTS The real returns
Page 147 and 148:
FINANCIAL ACCOUNTS The Company's ne
Page 149 and 150:
FINANCIAL ACCOUNTS In January 2005,
Page 151 and 152:
FINANCIAL ACCOUNTS Environmental li
Page 153 and 154:
FINANCIAL ACCOUNTS NOTE 22. COMPENS
Page 155 and 156:
FINANCIAL ACCOUNTS Geographical seg
Page 157 and 158:
FINANCIAL ACCOUNTS OAO LUKOIL Suppl
Page 159 and 160:
FINANCIAL ACCOUNTS III. Results of
Page 161 and 162:
FINANCIAL ACCOUNTS Estimated net pr
Page 163 and 164:
FINANCIAL ACCOUNTS develop and prod
Page 165 and 166:
FINANCIAL ACCOUNTS Group's share in
Page 167 and 168:
FINANCIAL ACCOUNTS and the Governme
Page 169 and 170:
FINANCIAL ACCOUNTS A corporate hold
Page 171:
ANNUAL REPORT, 2005 REFERENCE INFOR
show all

ANNUAL REPORT 2005 - Lukoil

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?