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Iraq negotiating improvement of West Qurna-2 project conditions with Lukoil

Lukoil signed a services contract for the development and production at West Qurna-2 in 2010

MOSCOW, October 13. /TASS/. Iraq hopes Lukoil will keep its stake in the West Qurna-2 project, Oil Minister Ihsan Abdul Jabbar told reporters on the sidelines of the Russian Energy Week, adding that the country is negotiating improvement of economic conditions of the project.

"We are negotiating improvement of conditions of the project now. We hope they will keep the stake in West Qurna-2," he said when asked how the negotiations on sale of part of Lukoil’s share in the project are going.

The Russian oil major Lukoil is involved in the development of West Qurna-2 field, one of the world's largest fields located in the southern part of Iraq, 65 kilometers north-west of Basra. Its initial recoverable reserves are estimated at 14 bln barrels. Lukoil signed a services contract for the development and production at West Qurna-2 in 2010.

Chief Executive Officer of Lukoil Vagit Alekperov told reporters this summer that the company had discussed a partial sale of its stake in the West Qurna-2 project with the Iraqi authorities, adding that it saw a huge interest in the project. However, the Iraqi Oil Ministry insisted on Lukoil’s keeping its participation in the project. Consequently, the company continued negotiations on improvement of economic conditions at West Qurna-2, particularly on the Yamama accumulation, Alekperov said.

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