LUKOIL Overseas Enters A New Project In Iraq
As a result of the 4th licensing round in Iraq, LUKOIL Overseas (wholly-owned subsidiary of LUKOIL) and INPEX Corporation of Japan were awarded rights to explore Block 10 in Southern Iraq.
Block 10 covers an area of 5,500 square kilometers and is located 120 km west of the city of Basra. Major oil companies are developing giant oil fields (Rumaila, West Qurna-1, West Qurna-2 and Al-Garraf) in this area where large oil reserves are concentrated. LUKOIL Overseas as operator of the block will have a 60% share in the project and INPEX will hold the remaining 40%. Bids made by the winning companies included a remuneration fee of $5.99/boe, signature bonus of $25M as well as 1375 line kilometers of 2D-seismic and drilling of one exploration well as a minimum work program with minimum investment of $100M. Detailed conditions of the petroleum agreement for Block 10 will be further discussed with the Government of Iraq.
In Iraq LUKOIL is currently developing West Qurna-2 field with recoverable oil reserves of nearly 14 billion barrels. The field is located 65 km northwest of the city of Basra. The contract for West Qurna-2 field was signed on January 2010 for the term of 20 years with an option to extend it for 5 years. Project partners are LUKOIL Overseas (75%) and Iraqi state North Oil Company (25%). This April, West Qurna-2 entered an active stage of field development which includes development drilling and construction of the key production facility, oil treatment plant.
SOURCE: LUKOIL