Russia's Lukoil Holdings (LUKOY, LKOH.RS) and Norway's Statoil ASA (STO) Tuesday signed an initial deal to develop the Iraqi supergiant West Qurna Phase 2 oil field, 16 days after the closure of the country's second post-war licensing auction, Iraqi oil ministry officials said.
Russia's Lukoil Holdings (LUKOY, LKOH.RS) and Norway's Statoil ASA (STO) Tuesday signed an initial deal to develop the Iraqi supergiant West Qurna Phase 2 oil field, 16 days after the closure of the country's second post-war licensing auction, Iraqi oil ministry officials said.

The two companies won the field by pledging to lift crude oil production to 1.8 million barrels a day for a fee of $1.15 a barrel. According to a separate statement from Statoil Tuesday, the companies have adjusted their shares in the field, with Statoil upping its stake to 25% of the field's development rights from 15% previously, and Lukoil's stake dropping to 75% from 85%.

The initial deal for West Qurna Phase 2 was signed in Baghdad by Iraq 's deputy oil minister Abdul Kareem al-Luaby with executives from both companies.

The deal still needs the approval of the Iraqi cabinet before its final signature, the officials said. "We hope that the agreement will be ratified by the cabinet as soon as possible," Luaby said.

Supergiant West Qurna Phase 2, discovered in 1973, holds some 12.8 billion barrels of proven crude oil reserves. It is located in the Basra governorate, some 65 kilometers northwest of the city of Basra in southern Iraq .

Lukoil , Russia 's second largest oil company in term of output, signed a contract to develop the field with the former regime of ousted Iraqi leader Saddam Hussein but the deal was annulled in 2002.

Διαβάστε ακόμα