Lukoil Signed an Additional Agreement with Iraq to Increase Oil Production
Lukoil has entered into an additional agreement on the West Qurna 2 project in Iraq, which provides for the extension of the service contract for ten years, until 2045, and a gradual doubling of the field’s capacity with a production plateau of 800 thousand barrels per day, the company reported.
“In Baghdad, representatives of PJSC Lukoil and the Basra Oil Company signed an additional agreement to the contract for the development and production of oil at the West Qurna 2 field,” follows from the press release of the Russian company.
According to the company’s statement, the document provides for improved conditions and an extension of the service contract for ten years, until 2045, investments for the further development of the project, a gradual doubling of the field’s capacity with the achievement of a production plateau of 800 thousand barrels per day, which will lead to an increase in the economic efficiency of the Zapadnaya project Kurna 2″.
It is noted that according to the field development plan, it is planned to put into operation new well pads, oil treatment and integrated gas treatment facilities, as well as the construction of export pipelines, water injection facilities and the expansion of the tank farm.
The signing of an additional agreement is a continuation of the long-term strategic partnership between Lukoil and the Iraqi Ministry of Oil, and also confirms the parties’ commitment to continue working together in the development of the Iraqi energy sector, the company emphasizes.
The West Qurna 2 field is one of the largest in the world with initial recoverable reserves of approximately 14 billion barrels. Lukoil owns 75% of the project, and the state-owned Iraqi North Oil Company owns 25%. Lukoil signed a service contract for development and production at the field in 2010. The Russian company began producing oil at the project in 2014.
