The gas field is located in the center of the country next to the world's largest oil field Ghawar. Lukoil is to drill at least nine exploratory wells and conduct seismic exploration during a prospecting period to last for five years, and is expected to put $215 million in the geological prospecting program.
A joint venture, LUKOIL Saudi Arabia Energy Ltd. (Luksar,) was set up with the state oil company Saudi Aramco, in which Lukoil holds an 80% stake. If commercial deposits of hydrocarbons are discovered, the gas produced will be supplied to the Saudi domestic customers. Gas condensate will be exported.
"The Saudi project meets all of Lukoil's effectiveness and competitiveness criteria, and is an important aspect of the company's strategy in which the Middle East is a strategic development region," Alekperov said. [RU EUROPE EEU EMRG SA CRU OIL PRO] sd