Russia’s Lukoil announces discovery of oil reserves in southern Iraq

ERBIL (Kurdistan 24) – Russia’s second-largest oil producer, Lukoil, on Thursday stated that they had discovered oil reserves in Iraq’s southern Muthanna province’s area 10.

The statement was made during a meeting between Iraqi Prime Minister, Adil Abdul-Mahdi, and Lukoil president, Vagit Alekperov, in Baghdad on Thursday.

Abdul-Mahdi noted the federal government of Iraq was interested in the development of the Iraqi economy and making progress in facilitating investments, pointing to “the need for Iraq to build refineries and the provision of oil derivatives and not just export oil,” according to his press office.

The meeting was attended by Iraqi Deputy Prime Minister for Energy and Minister of Oil, Thamer Ghadhban.

Alekperov stated that he had reviewed the work being done by the company and its investment projects in the development of production and extraction in Iraqi oil fields, as well as future plans to reflect the country’s needs.

“The company discovered oil reserves in area (10) in Muthanna province, confirming the readiness of the company to meet the requirements of the Iraqi oil sector and to provide expertise and training to Iraqi staff,” the Lukoil head said, according to the statement released by Abdul-Mahdi’s press office.

Lukoil has been looking for opportunities to expand its business in Iraq since the late 1990s when an agreement was reached with the then-government of Iraq to develop the West Qurna field.

As a result of sanctions and conflict in the region, the company’s wish to work in Iraq was realized in 2009 when they won the tender for the West Qurna 2 development project.

Their contract is for a period of 25 years with a target of achieving plateau production of 800,000 barrels of oil per day (bpd) at the end of 2024.

The West Qurna 2 project completed its first oil production in March 2014, and today, the field has added the largest incremental production growth in Iraq of 400,000 bpd, and is currently producing at a rate of 385,000 bpd from the Mishrif formation, which represents 9% of the total Iraqi production of crude and 12% of Iraq’s exports.

Editing by Nadia Riva