LUKOIL, a Russian company, is emphasizing its 35-year history of technological development, significant hydrocarbon discoveries, and geological exploration, which suggests that the search for oil and gas is becoming more data-driven. The company asserts that its geologists have identified hundreds of deposits onshore and have uncovered significant potential oil and gas territories in the Baltic Sea and North Caspian regions.
According to LUKOIL, its exploration teams have successfully drilled over 5,500 kilometers of wells throughout the company’s existence, resulting in a drilling success rate exceeding 80%. The figure illustrates the importance of integrating geological expertise with advanced seismic surveys, digital modeling, and modern drilling technologies in an industry where exploration failures can result in huge financial losses.
The company’s historical performance is corroborated by more recent exploration data. LUKOIL succeeded in drilling 58 prospecting wells in 2024, achieving an 83% success rate, a rise from 80% in 2023. In Russia alone, the success rate was 81%. The company reported 65 deposits and 10 new fields during the same year, with eight of these fields located in Russia.
From Geological Surveys to Digital Exploration
Geological mapping, seismic measurements, exploratory drilling, and the interpretation of rock samples have been the traditional methods of oil exploration. Nevertheless, modern exploration is increasingly dependent on the integration of these diverse sources of information into intricate three-dimensional models of underground formations.
LUKOIL uses 3D seismic surveys to improve comprehension of previously discovered deposits and identify potential geological structures. These surveys assist geologists in the interpretation of underground formations, the identification of potential hydrocarbon-bearing layers, and the determination of the optimal location for exploratory well drilling.
This activity continues to be of considerable magnitude. LUKOIL conducted 3D seismic surveys spanning 4,428 square kilometers in 2024, and its exploration drilling amounted to approximately 247,000 meters. Even though Russia remains its primary exploration market, the company conducts exploration programs in many countries.
In regions with intricate geological structures, the significance of this approach is especially apparent, as conventional exploration methods can yield uncertain results.
LUKOIL announced the successful implementation of a new geophysical exploration methodology in the Mishvan region of the Nenets Autonomous District in July 2017. The methodology integrated electrical prospecting, well logging, up-hole seismic measurements, and field descriptions of rock specimens.
The method was developed to address challenging geological conditions, such as regions with discontinuous permafrost. The company could enhance the quality of seismic information and identify more suitable locations for explosive devices used in seismic surveys by developing a seismic-geological model during field operations.
Geological Modeling and Machine Learning
Digital technologies have also been developed by LUKOIL to improve the interpretation of geological data.
LUKOIL-Engineering announced the implementation of machine-learning technologies in October 2020 to facilitate the automated description of thin rock sections and the analysis of core research results at the Usinskoye field.
The objective of the technology was to expedite the construction of three-dimensional geological models, the interpretation of well recording data, and the analysis of three-dimensional seismic information.
The use of machine learning is especially relevant due to the vast quantities of data that are produced during geological exploration. Processing rock samples, interpreting seismic measurements, and comprehending reservoir characteristics can necessitate a significant amount of time and specialized knowledge.
Geologists can improve the consistency of their geological interpretations and analyze larger datasets by automating portions of this process.
In September 2021, LUKOIL commissioned an integrated digital model of the Vat-Yeganskoye oil field, which was another major accomplishment. The project comprised digital twins of over 3,000 wells and 12 development facilities, which encompassed the entire production chain from the reservoir to the central oil collection and treatment facility.
Despite the fact that the project concentrated on field operations rather than exploration alone, it illustrates how LUKOIL is integrating geological models, production data, and infrastructure management into a shared digital environment.
Discoveries in the Baltic and Caspian Seas
The North Caspian has been one of LUKOIL’s highest-profile exploration success stories. The company initiated extensive exploration in the Russian sector of the Caspian Sea in the 1990s, and it progressively identified a series of significant offshore hydrocarbon deposits.
The Yury Korchagin field, which was discovered in 2000, was the first significant discovery in the region. Production commenced in 2010.
In 2005, the Vladimir Filanovsky field was another noteworthy discovery. It was one of the largest oil discoveries in post-Soviet Russia, with initial recoverable reserves estimated at 129 million tons of oil and 30 billion cubic meters of gas. In 2016, commercial production commenced.
LUKOIL reported that the cumulative liquid hydrocarbon production from its Russian North Caspian fields had reached 50 million tons by February 2023. In the Russian sector of the Caspian Sea, the organization had identified eleven fields.
The company’s presence in the Baltic Sea has also been augmented through exploration. The D29, D33, and D41 fields were discovered by LUKOIL in 2015, further expanding its Kravtsovskoye offshore development, which was operational since 2004.
The D41 field serves as an example of the potential impact of geological and engineering solutions on development costs. LUKOIL drilled horizontal wells from an onshore site, rather than relying on a conventional offshore production platform. Two wells were operational in 2019, with one of them spanning a total of 7,947 meters.
Improving Exploration Efficiency
The oil industry is increasingly integrating traditional geological expertise with advanced computing, seismic imaging, and automated data analysis, as evidenced by LUKOIL’s exploration strategy.
The goal is not merely to uncover additional oil and gas deposits, but rather to mitigate geological uncertainty prior to allocating resources to costly drilling operations.
The company continues to underscore the significance of scientific research, digital technologies, and meticulously chosen exploration targets, as evidenced by its reported 83% success rate in exploration drilling in 2024.
After 35 years of operations, LUKOIL’s experience in the Caspian, Baltic, and Russian onshore regions demonstrates the increasing influence of technology in determining the location of the next generation of hydrocarbon resources.