Lukoil Signs New Deal for Developing Iraqi Oilfield

Lukoil and the Basra Oil Company signed a new development deal for West Qurna-2 field that provides for an oil production plateau of 800,000 barrels per day. The new deal calls for an increase in production to a plateau rate of 800,000 bpd in 2025 from current flow of 480,000 bpd, World Oil reported. The plateau target is lower than that of Lukoil’s earlier service contract, which called for early production from the Late Cretaceous Mishrif formation of 400,000 bpd and full-field Mishrif output of 550,000 bpd. These indicators will be achieved as a result of drilling and commissioning of new production and injection wells, construction and operation of oil treatment, storage and transportation facilities, as well as facilities for gas treatment and power generation. The company's experience, infrastructure and cost compensation within the project development from the current production will ensure maximum efficiency for the project's implementation. The parties noted that as per the agreements reached, Lukoil will remain one of the largest investors and employers in Iraq.