DHAHRAN, 6 March 2004 — Russian energy giant Lukoil says it is extremely confident of discovering large natural gas deposits in northern Rub Al-Khali. They were recently awarded the contract to develop the field there known as Zone A.
“Probability of a commercial hydrocarbons discovery exceeds 80 percent” at the field, Lukoil said ahead of signing an agreement with Saudi Aramco.
The formal 40-year contract will be signed in Riyadh tomorrow by Saudi Aramco President Abduallah Juma and Lukoil CEO Vagit Alekperov.
The venture, Luksar, is 80 percent owned by Lukoil and the rest by Saudi Aramco. The gas field of 29,900 square kilometers is located in the northern part of the Rub Al-Khali in the center of the Kingdom.
The venture will borrow $215 million from Saudi Hollandi Bank to fund a five-year exploration program on the field, Lukoil said.
Luksar will form an 11-member board of directors, comprising eight Lukoil officials, two Saudi Aramco officials and a Saudi government representative by the end of the month, and the board will appoint a Lukoil manager as general director of the ventures, Lukoil announced.