Iraq inks preliminary deal to develop supergiant oil field

Iraqi Oil Ministry signed on Tuesday a preliminary contract with a consortium led by Russian Lukoil to develop the West Qurna Phase 2 oil field in southern Iraq.

Lukoil, partnered with Norway’s Statoil ASA, will develop the oil field to produce 1.8 million barrels per day (bpd) from its proven reserves of 12.88 billion barrels of oil.
The pair will be paid a remuneration fee of 1.15 dollars per barrel, according to the deal.

Lukoil owns 85 percent of the venture, while Statoil, 15 percent.

West Qurna Phase 2 is one of the world’s biggest undeveloped oil fields. It lies west of the almost equally enormous Majnoon field which was won by a consortium led by British-Dutch Shell.

Xinhua