(Reuters) вЂ" Russian oil company LUKOIL will carry out additional seismic survey in the Yalama field on the Caspian as an operator of the contract area to define the place of drilling of the second exploration well, Khoshbakht Yusifzade, the First Vice President of the State Oil Company of Azerbaijan (SOCAR), told journalists.
"Yalama is large field covering the area of 3,000sq km. Late this May LUKOIL completed the drilling of the first exploration well and processed its results. We accorded with LUKOIl to carry out additional seismic survey to define data on the bloc, together with the data on the first well we could determine the place of drilling of the second exploration well,вЂќ Yusifzade underlined.
According to Yusifzada, additional seismic survey and drilling of the second well be more probably carries out in 2006.
LUKOIL spent over $50m on drilling the first exploration well on Yalama, located in the junction of the Azerbaijani and Russian sectors in the Caspian, while did not find commercially hydrocarbons.
The SOCAR does not exclude that Yalama has 800 million barrels and 50 billion cu m of natural gas.
LUKOIL and the SOCAR concluded a contract on YAlama field development in 1997, while in 2003 it was changed through increase of RussianвЂ™ companyвЂ™s stake from 60% to 80% at the expense of cut in SOCARвЂ™s stake from 40% to 20%.