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Lukoil starts drilling exploration well at D-222 Block

04 November 2008 15:09 (UTC +04:00)

Baku. Vahab Rzayev â€“ APA-Economics.Russiaâ€™s LUKoil Overseas Ltd. has started to drill the second well on the prospective block D-222 (Yalama), offshore the Azerbaijan section of the Caspian Sea, said Khoshbaht Yusifzade, Vice-President of SOCAR.
He added that the design depth is 2 650 meters and about 1 000 meters of which has been drilled.
The drilling work is carried out through Heydar Aliyev Rig.
Drilling of the first exploration well didnâ€™t find it economically feasible in 2006.
Lukoil (60%) and SOCAR (40%) signed exploration, development and production sharing agreement on the block on July 3, 1997.
D-222 Block, straddling Azerbaijani and Russian sectors of the Caspian Sea, is part of Yalama Structure that is 70-80 meters far from the shore.
DYalama is estimated to hold 800 million barrels of oil and 50 billion cubic meters of natural gas. The project costs $2.5 billion in investment.