LUKOIL secures extended contract for West Qurna-2 oil field development in Iraq

In a significant development for Iraq’s energy sector, PJSC LUKOIL has finalized a supplementary agreement with Basra Oil Company, extending the Russian oil firm’s role in the West Qurna-2 project. Taking place in Baghdad, this agreement introduces advantageous terms for LUKOIL and extends the existing service contract by a decade, setting a new horizon to 2045. It’s a strategic move that promises to amplify the project’s economic impact, doubling the oil field’s output to an impressive plateau of 800,000 barrels per day.

At the heart of the field’s expansion are infrastructural enhancements: the construction of multi-well pads, oil treatment facilities, complex gas treatment units, and water flooding installations, along with pipeline extensions and tank battery expansions. These developments are poised not only to surge the oil production but also to significantly contribute to job creation in Iraq.

LUKOIL’s supplementary agreement underscores a solidified strategic partnership with Iraq’s Ministry of Oil, reaffirming their collaborative pledge to foster the nation’s energy sector growth. The deal’s spotlight on community benefits, with LUKOIL’s commitment to erecting social infrastructure, amplifies its impact beyond the oil industry.

Situated in southern Iraq, West Qurna-2 boasts approximately 14 billion barrels of initial recoverable reserves and spans an extensive 300 square kilometers. Since LUKOIL’s initial service contract in December 2009, the oil giant has spearheaded the field’s development, commencing oil production in 2014 and achieving success with the Early Oil of Mishrif Formation project. Presently, the West Qurna-2 field is a major contributor to Iraq’s oil output, accounting for 9% of the nation’s total production.