Lukoil abandons D-222 well off Azerbaijan

June 29, 2005
Lukoil Overseas Holding Ltd. has abandoned its Yalama well, the first exploration well on deepwater Block D-222 in the Azeri sector of the Caspian Sea.

By OGJ editors
HOUSTON, June 29 -- Lukoil Overseas Holding Ltd. has abandoned its Yalama well, the first exploration well on deepwater Block D-222 in the Azeri sector of the Caspian Sea.

The Heydar Aliyev semisubmersible rig—formerly Lider—drilled the well to its design depth of 4,500 m in 332 m of water. Although traces of natural gas were encountered, no commercial reserves of hydrocarbons were found, Lukoil said.

Lukoil, operator of the block, said data from a 2004 seismic survey are being reinterpreted, and the operator expects to develop a future work plan for the block by yearend.

During the drilling operation, Lukoil tested some state-of-the-art deepwater drilling techniques and collected geological data in the central area of the Caspian Sea, where no exploration drilling has been conducted.

Lukoil, holding 80% interest in the block, has a production-sharing agreement with State Oil Co. of the Azerbaijan Republic to explore and develop 3,037 sq km. SOCAR holds 20%.