"LUKOIL" is ready to adapt the contract for West Qurna-2 under new Iraqi law

NK "LUKOIL" is ready to adapt the contract for the West Qurna field, 2 for the new Iraqi law, said the head of the company Vagit Alekperov. "We are ready to adapt the contract for West Qurna, under new Iraqi law", - he said. The head of the company pointed out that in Iraq "made all the laws to work in the oil market of Iraq." "Approved by all the laws on competition, rules, approved by the legislative framework in order to invest and have a guarantee of return of investments", - said V. Alekperov. He recalled that his company has accumulated extensive experience in the West Qurna-2. "We are most willing to start development of the draft West Qurna-2", - he said. "We hope for success", - added V. Alekperov. The head of Lukoil also said that his meeting with Iraqi Prime Minister Nouri al-Maliki has been created successfully. LUKoil in 1997 signed with the Ministry of Oil and Gas Iraq agreement on the development of West Qurna-2 under the conditions of the production sharing agreement (PSA). Regime of sanctions against Iraq after the Gulf War did not allow Russian companies to implement oil projects in the country. However, in late 2002, the Iraqi side stated that the agreement for the development of West Qurna-2 terminated by reason of failure of "LUKOIL" of the contract. "LUKOIL" stated an intention to negotiate with the new leadership of Iraq on the resumption of the project, and in the case negotiated pay 17.5% of its share of the U.S. ConocoPhillips. The talks, in particular, anticipated to intensify following the Iraq oil law. The deposit is considered to be one of the largest in the world, its proven reserves are estimated at 6 billion barrels of oil. The validity of the SPR was established before 2020, Accumulated production for the period of the contract could amount to 4.8 billion barrels of oil and 56.4 billion cubic meters. m of natural gas. Capital investments in the development of the deposit are estimated at about $ 4 billion "LUKOIL" companies have investment commitments relating to oil deposits in Iraq of $ 495 million over three years from the time when the development becomes possible.