Lukoil could participate in exploration at Iraq's Western Euphrates Block, Nassiriya project
MOSCOW. April 24 (Interfax) - Following the launch of production at Iraq's West Qurna 2, Russian oil giant Lukoil is considering participating in new and prospective projects in the country, Lukoil said following a board of directors meeting.
"A memorandum of understanding with the Iraqi state-owned Oil Exploration Company was signed on 4 April 2014 in Baghdad. The memorandum provides for the possibility of geologic exploration at the Western Euphrates Block with an area of 17,000 square kilometers. Currently, appraisal is under way at the block, and the appraisal outcomes will be taken into consideration when deciding whether to begin contract preparation. OAO Zarubezhneft will act as Lukoil's partner on the part of Russia," Lukoil said.
"Lukoil is also considering the option of joining into a partnership with OAO Zarubezhneft to enter the bidding procedure for the Nassiriya integrated project providing for the development of a gigantic oil field and refinery construction," the statement says.
"On 10 April, 2014, Lukoil started 2D seismic surveys at Block 10 in southern Iraq. The compulsory geologic exploration program for Block 10 provides for 5 years with the possibility of a 2-year prolongation and, in addition to 2D-seismics, provides for the drilling of one prospecting well, scheduled to be drilled in the first quarter of 2016," Lukoil said.
"Additionally, LUKOIL signed a Memorandum of Understanding with the Iraqi Ministry of Industry to estimate the outlooks for construction of a gas chemical plant to utilize the associated gas from the West Qurna-2 field," the company said.
"As previously reported, the first oil at the West Qurna-2 field was produced on 5 March 2014, while a daily oil production rate of 120,000 barrels was reached on 28 March 2014. The West Qurna-2 field includes two major oil and gas formations, Mishrif and Yamama. The field's total initial oil-in place comes to around 35 billion barrels," the statement says.