LUKOIL International Services B.V.
LUKOIL International Services B.V.

Egypt

Assets in Egypt were the first production projects of the Company overseas.

LUKOIL is a partner in the Meleiha production concession (Egypt, Western Desert) with a contract validity period to 2024. Meleiha is one of LUKOIL's first foreign production projects. The Company joined it in 1995. The following companies currently participate in the project: ENI — 76% (operator), LUKOIL — 24%.

In recent years, additional exploration activities, including 3D seismic and exploration drilling, have led to the discovery of several highly productive fields — Northern Nada and Gawaher (2007), Arcadia (2010), Emry Deep (2012), Rosa North (2013) and Meleiha West (2014).

LUKOIL is implementing the West Esh El-Mallaha (WEEM) production project (Eastern Desert, near the town of Hurghada). Production on the block began in 1997. After entering the project in 2001, LUKOIL rapidly increased production at the fields (more than twelvefold in the first two years of work).

In 2004, several important infrastructure facilities were constructed at WEEM, including a tank farm with total capacity of 9,000 cubic meters and a 100-km export oil pipeline, which connected the fields in the block with the oil loading terminals in Ras El-Bikhar and Gebel Az-Zeit on the west coast of the Red Sea.

In February 2010, LUKOIL entered the WEEM Extension project in Egypt (an area immediately adjacent to the WEEM block in the northeast). The project participants are as follows: LUKOIL — 50% (operator), Tharwa Petroleum — 50%.

Obligations to explore the block have been fulfilled, including exploration well drilling and 3D seismic acquisition. Pilot operations on the block started in 2010 and a 20-year production license was obtained in the same year.