Sunday, January 31, 2010

Russian Lukoil signs deal to develop huge Iraqi oil field

Crude Oil

Russia's Lukoil signs deal to develop huge Iraqi oil field

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Iraq has signed a contract with Russia's Lukoil to develop one of the world's biggest oilfields, sealing the last of 10 deals that could turn the war-shattered country into a top oil producer.

AFP - Russian energy giant Lukoil signed an agreement in Baghdad on Sunday to develop Iraq's massive West Qurna-2 oil field, the company said in a statement.

Along with Norway's StatoilHydro, Lukoil signed an initial deal in December last year to develop the field, which is expected to dramatically increase the country's crude production to 12 million barrels per day (bpd) by 2017.

According to the terms of the deal, Lukoil and StatoilHydro are aiming to raise production at the field in southern Iraq, which has proven reserves of around 13 billion barrels of oil, to 1.8 million bpd.

They will receive fees of 1.15 dollars per barrel extracted.

"Production must reach 1.8 million barrels over the course of the next six years," Iraq's Oil Minister Hussain Shahristani said at the signing ceremony, attended by Lukoil president Vagit Alekperov.
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