MOSCOW, November 2. /TASS/. 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 in Iraq, the Russian company said in a press release.
"The agreement provides for better conditions and prolongation of the service contract for 10 years (until 2045), investments into further development of the project, and gradual doubling of the field's output with plateau level reaching 800 thousand barrels per day. This will result in an increase in the economic efficiency of the West Qurna-2 project," according to the press release.
The field development plan envisages bringing new multi-well pads into production, commissioning oil treatment facilities and complex gas treatment facilities for the Yamama formation, construction of export pipelines and water flooding units, as well as expansion of the tank battery, the company says.
"The development of the West Qurna-2 project under the Supplementary Agreement will promote creation of new jobs for Iraqi citizens. Under the agreement Lukoil also aims to construct social infrastructure facilities for the locals," the press release says.
The signing of an additional agreement in Baghdad confirms the parties’ commitment to continue working together in the development of Iraq’s energy sector.
Earlier, Lukoil increased oil production at the West Qurna-2 project in Iraq to a target level of 480,000 barrels per day. Lukoil has been producing at the West Qurna-2 field in southern Iraq since 2014. The project is one of the largest in the world - its recoverable reserves are estimated at 14 billion barrels. Lukoil signed the contract for the development of the field in 2010 and has already completed the first stage of development.