Conservative estimates from the company have already indicated around 4 million tonnes of oil and 10 billion cubic metres of gas production per annum could be achieved over the next 15 to 20 years.

In a statement Lukoil said, “The aggregate recoverable hydrocarbon reserves at the ‘Northern’ license block total 812 million tonnes of oil equivalent, including 100.3 million tonnes of oil, 677 billion cubic meters of gas and 34 million tonnes of condensate. Recoverable reserves at Central and Yalama-Samur fields are estimated at 1.1 billion tonnes of oil equivalent.

"Further intensive geological prospecting will raise annual production of feedstock in the region up to 50 million tonnes of oil equivalent by 2016-2018.”

“Exploratory drilling has been performed at five structures; Khvalynskaya, ‘170-km’, Shirotnaya, Sarmatskaya and Rakushechnaya. As of today, eight wells have been drilled and five large multilayer oil/gas, gas and gas condensate fields have been discovered [with] commercial flow of hydrocarbons reported at all fields,” added the company.

Production tests from both Khvalynskoye and Sarmatskoye fields yielded over 1 million cubic metres of gas daily making them the fields with the largest gas yield, while The the ‘170-km’ and Yury Korchagin fields both pumped out 377 cubic metres per day of oil.

The majority of the prospected sites are located at the sea-depth of up to 50 metres, though the largest of the structures, namely Central and Yalama-Samur, are 300-500 metres deep underwater.”

Lukoil is also preparing for further drilling programs for the area.