USD 63.9542


EUR 71.1299


BRENT 59.25


AI-92 42.27


AI-95 46.03


AI-98 51.75


Diesel 46.26



Lukoil Overseas Oil Producing Results

2 million tons of oil were produced on the block in Egypt since the beginning of operations

On the Egyptian field West Esh El-Mallaha (WEEM) located in the Eastern Desert near the Khurghada resort the total of 2 million tons were produced since the beginning of its operation.

The field is developed by LUKOIL Overseas and Eshpetco of Egypt on a parity basis. WEEM is one of the four international production projects of LUKOIL Overseas.

The project exists since 1993, though the first 2D seismic survey was conducted on the block back in 1978. A 3D seismic survey was conducted on the license area in 1994. The first exploration well that gave oil shows was drilled on the block in 1995. The first production wells were drilled in 1997 and in 1998 the field was put in operation under the temporary scheme with crude oil transportation by truck tanks.

In 2001 LUKOIL Overseas entered into the WEEM project and provided for dramatic enhancement of the field development. In 2001 43.8 thousand tons were produced, in 2002 the production was 363.8 thousand tons and in 2003 it reached 545.2 thousand tons. Notably, the production increased by more than 12 times over just 2 years. Since May 2002 the project has been generating the increasing positive cash flow.

In 2004 575 thousand tons were produced on the WEEM field and the production plan was outstripped by 35 thousand tons. Besides, in 2004 3 new oil tanks were built on the field, a number of auxiliary units and a 100-km export pipeline, which connected the field with the oil loading terminals Ras El-Bikhar and Gebel Az-Zeit on the western coast of the Red Sea. The capacity of the pipeline is 24 thousand barrels of oil per day and it is designed for the uninterrupted operation within 30 years. The total cost of the construction amounted to USD 8 million.