Lukoil receives approval of declaration of commerciality for Eridu field reserves in Iraq
MOSCOW. March 6 (Interfax) - Russia's Lukoil has received approval from Iraqi state-owned Thi-Qar Oil Company (TOC) for its Declaration of Commerciality of Reserves and Outline Development Proposal for the Eridu oilfield located within Block 10 in Iraq.
Following TOC's approval, Lukoil and Inpex South Iraq are planning to proceed with the implementation of the Eridu oilfield development plan targeting 250,000 barrels per day production, Lukoil said in a press release.
The Iraqi Oil Ministry said planned output at the initial stage of 30,000 barrels per day should be achieved in 2025.
Exploration at Block 10 began in 2012; 2D and 3D seismic surveys were completed and three exploration and six appraisal wells were drilled. As a result, the Eridu field was discovered, with estimated reserves of 12.9 billion barrels. The field has become one of the largest oil discoveries in Iraq in the past 20 years.
Block 10, with an area of 5,800 sq. km., is located in southern Iraq, 120 km west of Basra, and 150 km from the West Qurna-2 field. Lukoil is the project operator with a 60% share, and its partner is Inpex South Iraq with 40%. The contract holder from the Iraqi side is state company TOC.
The preliminary estimate of recoverable reserves was more than 4 billion barrels. Last October, Japanese Inpex president and CEO Takayuki Ueda told reporters that if the Block 10 project in Iraq continued to stall, the company would consider selling its stake. Previously, it was expected that the project could be launched in 2024.
In addition to Block 10 in Iraq, Lukoil is involved in the West Qurna-2 project. Production at the field began in 2014.