ANNUAL REPORT 2005 - Lukoil
ANNUAL REPORT 2005 - Lukoil
ANNUAL REPORT 2005 - Lukoil
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LUKOIL is also implementing a number of projects in Kazakhstan (Karachaganak, Tengiz, Kumkol). The<br />
Group's share of daily production by these projects in <strong>2005</strong> was 96,000 boe, which is 4.9% of total<br />
production by the Group. All of these projects are moving ahead successfully.<br />
Construction work and drilling of new wells was carried out at Kumkol in <strong>2005</strong>. A total of 12 new wells<br />
with average daily production of 16.6 tonnes were brought on stream, and a project was drawn up for<br />
construction of a gas liquefaction facility with annual capacity of 300 million cubic meters.<br />
A program of multilateral well drilling was completed at the giant Karachaganak field. Two multilateral<br />
wells were drilled, with average daily flow rates of 1,013.5 tonnes. Production of stable condensate<br />
reached the planned daily level of 153,000 barrels. A project was drawn up for construction<br />
of a 150-kilometer trunk gas pipeline from Karachaganak to Uralsk, in order to provide gas<br />
supply to all parts of Western Kazakhstan Region.<br />
LUKOIL IN THE CASPIAN REGION<br />
LUKOIL's acquisition in <strong>2005</strong> of the company Nelson Resources<br />
Limited was part of the Group's strategy of transformation into a<br />
global energy company, but it also had the specific aim of<br />
strengthening Group positions in the Caspian region. Nelson Resources<br />
is taking part in hydrocarbon production projects at a number<br />
of fields in the western part of Kazakhstan (Alibekmola,<br />
Kozhasai, Karakuduk, North Buzachi and Arman). Nelson is the joint<br />
operator in most of these projects. In addition the company has<br />
an option agreement at two exploration blocks in the Kazakh sector<br />
of the Caspian Sea (South Zhambai and South Zaburuniye).<br />
Production by Nelson<br />
Resources Limited (share),<br />
million tonnes<br />
2.0<br />
1.5<br />
1.0<br />
0.5<br />
0.875<br />
1.222<br />
1.608<br />
Proved reserves of Nelson Resources Limited at the end of <strong>2005</strong><br />
were 172 million barrels. Average daily oil production in <strong>2005</strong> was<br />
0.0<br />
2003<br />
2004<br />
<strong>2005</strong><br />
32,000 barrels or 1.8% of total LUKOIL production. Consolidation<br />
of Nelson Resources by LUKOIL began in mid-October <strong>2005</strong>.<br />
Assets of Nelson Resources Limited<br />
Arman field<br />
50%<br />
50%<br />
Kazakhoil-Aktobe<br />
(the Alibekmola<br />
and Kozhasai fields)<br />
Karakuduk field<br />
76%<br />
North Buzachi<br />
field<br />
50%<br />
97
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