Global Processing

Russia''s Lukoil Signs Agreement on Iraq Oil Field

February 1, 2010
The Associated Foreign Press reports Russian energy giant Lukoil has signed an agreement to develop Iraq''s massive West Qurna-2 oil field, the company said in a statement. Norway''s StatoilHydro and Lukoil signed an initial deal in December 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 to 1.8 million bpd. They will receive fees of 1.15 dollars per barrel extracted. Lukoil has a 56.25 percent share, StatoilHydro 18.75 percent, and Iraq''s North Oil Company 25 percent, according to Iraqi officials. The agreement was ratified by the Iraqi government and will last 20 years with the possibility of a five-year extension, the company said. Production will start by the end of 2011.