07.07.10 Caspian Focus LUKOIL wins tender for two blocks in the Black Sea

Map of Black Sea and Surrounding States

LUKOIL's subsidiary, LUKOIL Overseas, and Vanco International have won tender for exploration and development of two blocks located in the Black Sea. The stake in the two blocks, devided between LUKOIL Overseas and Vanco, are 80 per cent and 20 per cent respectively.

The two blocks, Rapsodia and Trident, are located in the Romania region of the Black Sea, at water depths ranging from 90 to 1,000mt. The total area of the two blocks is estimated at 2,000 square km, located within a 60-100 km distance from the coastline.

According to the terms of the bidding LUKOIL Overseas is to sign a concession agreement with the National Agency for Mineral Resources of Romania within the next six months. Once the deal is completed, LUKOIL Overseas is expected to set up offices in Romania to oversee operations.

LUKOIL's continual success and focus on strategy, with intention to generate more cash per barrel of oil produced, means the company is set for further growth. LUKOIL already has a large presence in the Caspian region, and a move in to the Black Sea area is the next logical step for Russia's largest oil producer.

To find out more about LUKOIL please visit LUKOIL's web site, which you can find here.

For more news and expert analysis about the Caspian region, please see Caspian Focus.