Lukoil to Boost Iraq’s Oil Output

Lukoil to Boost Iraq’s Oil Output

Lukeoil, one of Russia’s biggest oil producer, submitted a request to the Iraqi authorities to amend the servicing contract for the West Qurna-2 oilfield which is located in southern Iraq, 65km Northwest of Basra, reported Reuters.

Lukoil’s President, Vagit Alekperov, met with the Iraqi oil minister, Jabar Ali Hussein Al Luaibi, in Baghdad. Alekperov noted the need to establish conditions for further investments in the project in order to boost production, by making appropriate amendments to the existing agreement, informed Rebuilding Iraq.

In December 2009, a consortium of Lukoil and Norway’s Statoil won a tender for the development of the West Qurna-2 field in Iraq. Its estimated recoverable oil reserves total approximately 13b barrels, according to the company’s website. In January 2010, the development’s production service contract was signed and ratified by Iraq’s Council of Ministers. The West Qurna-2 contract is a hybrid of a service contract and a production sharing agreement that potentially enables Lukoil to book part of the reserves and production volumes.

In related Iraqi news, Egypt Oil&Gas reported that the OPEC country will not participate in informal production freeze talks among group members in Turkey early October, as the oil minister urged petroleum firms operating in Iraq to boost production.

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