[Goldfisch]

Russian Company to Search for Gas in Saudi Desert

Created: 05.11.2004 14:44 MSK (GMT +3), Updated: 17:42 MSK

MosNews

The Russian-Saudi joint venture Luksar will commence a seismic survey of gas deposits in Saudi Arabian desert, the Saudi Arab News newspaper reported on Friday, Nov. 5. Luksar is the joint venture of Lukoil Overseas, a subsidiary of Russia’s oil major Lukoil and Saudi Aramco oil company.

Survey work on an area totaling more than 30,000 square kilometers will continue throughout the next year. The drilling of at least nine exploratory wells is expected to start in 2006 and to last five years. Specialists believe the likelihood of finding a large gas deposit, suitable for commercial exploitation, in the desert is about 80 percent.

Lukoil is the first Russian company to gain access to gas deposits in Saudi Arabia. In March this year it signed a 40-year contract to explore and develop natural gas deposits in the northern part of the Rub’ al Khali [Empty Quarter] desert. The company, which is involved in about 15 oil and gas projects in various countries of the world, will invest over $200 million in the development of the deposit. It is thought the Saudi project could earn Lukoil a return of up to 15 percent on its investment, BBC reported.
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