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. Last Updated: 07/27/2016

LUKoil, Norsk in Reserves Dispute

LUKoil said Monday that it had discovered a new major oil field in Iran that might contain up to 1 billion barrels, but senior venture partner Norsk Hydro of Norway said the estimate was very high.

LUKoil said the figure came after the venture analyzed the first well on the Azar structure of the bigger Anaran exploration block, located in western Iran and close to the border with Iraq.

The news came as a first official confirmation of Anaran's potential reserves, although Hydro has previously said the deposit has the potential to produce 100,000 barrels per day.

But on Monday, the Norwegian group said it disagreed with LUKoil's estimates. "It sounds very high," Norsk Hydro information manager Kama Strand said. "We don't know what they are talking about as it is much too early to tell. We have only drilled one well in the Azar field that has been interesting."

Hydro has a 75 percent stake in the project, while LUKoil owns the remaining 25 percent.