year contract with Lukoil – Iraqi authorities signed a 20 –
February 1, 2010 – 12:00 am
today in Baghdad, President of OAO LUKOIL Vagit Alekperov signed a contract to provide services for the development and production of the field, West Qurna-2. This contract has been ratified by the Cabinet of Ministers of Iraq. This RBC reports quoting the press service of the company.
Parties to the contract are the Iraqi state oil company, South Oil Company and a consortium of contractors in the Iraqi state company North Oil Company (25%) , LUKOIL (56.25%) and Norway’s Statoil ASA (18,75%). Contract duration is 20 years with possibility of extension for 5 years.
Drilling on the “West Qurna-2″ will begin in 2011., Mining – in the end of 2012. Achieving the target level of production in excess of 90 million tons of oil per year is planned for 2017. Plan field development, in particular, provides for additional seismic, drilling more than five hundred wells.
Investments OAO “LUKOIL” in the project, according to preliminary estimates, in 2010. amount to about $300 million in the next 4-5 years – 4.5 billion dollars
As reported earlier, in December 2009. consortium of “LUKOIL” and the Norwegian company Statoil was awarded the tender for the right to develop deposits of “West Qurna-2. Companies have submitted the best tender offers: the amount of remuneration for each barrel of oil – to $1.15 at the level of production 1.8 million barrels a day.
deposit “West Qurna-2″ , with recoverable reserves of 13 billion barrels, is located in southern Iraq, 65 kilometers north-west of the large port city of Basra. The deposit was discovered in 1973.
in 1997. LUKoil received the right to develop “West Qurna-2, but to start production from the field and could not because of the international situation around Iraq and the US-led invasion in 2003. In 2008. LUKOIL’s license was revoked, but now Russia’s company regained the right to development of the field.
