LUKOIL President Vagit Alekperov is defending the contract for development of West Qurna-2 field in Iraq.
Photo: Vasily Shaposhnikov
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LUKOIL Gets the 2nd Chance in Iraq
LUKOIL President Vagit Alekperov endeavors to defend contract for development of West Qurna-2 field in Iraq. Alekperov delivered Vladimir Putin’s letter to authorities of that country yesterday. The document specified the request to back up LUKOIL in that undertaking. Although the future of the project is still obscure, LUKOIL is optimistic about the results of the visit – the company managed to agree on creation of a working group that is to adjust provisions for West Qurna-2 development to the new laws of Iraq.
Vagit Alekperov’s visit to Iraq and his meeting with Iraqi President Jalal Talabani and Prime Minister Nuri Al-Maliki was reported by LUKOIL press service. The highlight of the visit was potential participation of LUKOIL in oil and gas projects in Iraq, including West Qurna-2.
Alekperov said LUKOIL and Iraq’s leadership notably neared the mutual understanding of the terms of the project. The parties agreed to create a working team, which would adjust the provisions for the project's launch to the future legislation of Iraq. They also agreed that LUKOIL Overseas would bid for new projects at tenders that Iraq’s government would hold after passing a new oil bill.
The contract for production and development of the second stage of West Qurna-2 project was inked March 21, 1997 with LUKOIL having 68 percent in it. Once LUKOIL and ConocoPhillips became the strategic partners in 2004, LUKOIL undertook to transfer 17.5 percent to the U.S. company. Russia’s Zarubezhneft and Mashinoimport hold another 3.25 percent in the project. West Qurna-2 field is one of the biggest in the world with the proven reserves of above 800 million tons of oil (6 billion barrels), according to LUKOIL.
Iraq cancelled the agreement in late 2002, in time of Saddam Hussein ruling. In September of 2007, the country’s authorities confirmed that LUKOIL would have to bid for West Qurna-2 anew.
www.kommersant.com
All the Article in Russian as of Mar. 26, 2008
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