Russia's Lukoil, Iraqi PM discuss plans to increase production

MOSCOW. April 10 (Interfax) - Iraqi Prime Minister Mohammed Al Sudani and a delegation from Lukoil discussed the Russian oil company's plans for increasing production in the country, the prime minister's press service reported.

They discussed the West Qurna 2 oil field in Basra, and the Eridu oil field in the Dhi Qar and Al Muthanna provinces.

The prime minister stressed the need to accelerate the projects to ensure supplies of oil, as well as natural gas, which is used for power plants, the press service said.

Lukoil informed the prime minister about the main barriers to the implementation of the company's projects in Iraq, and he ordered the Oil Ministry to look into these issues and take the necessary measures to resolve them, the press release said.

Lukoil produces oil at the West Qurna 2 field, the world's second largest with recoverable reserves of about 14 billion barrels. Lukoil holds a 75% stake in the project, and Iraq's state-owned North Oil Company holds 25%. The field is currently producing more than 480,000 barrels per day.

Lukoil is also developing Block 10, where the Eridu field was discovered. Block 10 covers 5,600 square km in Dhi Qar and Al Muthanna provinces, 120 km west of the city of Basra. Lukoil, the operator, holds an 80% stake in the project and Japan's Inpex Corporate holds 20%. The contract holder on the Iraqi side is the state-owned South Oil Company.

In the spring of 2023, Lukoil secured approval for its application to commercialize Eridu's reserves and a preliminary proposal to develop the field. After this the partners planned to begin implementing a development plan with projected production of 250,000 bpd. Anticipated first-stage production of 30,000 bpd is supposed to be reached in 2025.