Lukoil and the Basra Oil Company signed a development plan for the West Qurna-2 field that will take oil production to a peak of 800 thousand barrels per day.
According to the plan, the oil production of 480 thousand barrels per day will be reached in 2020 and 800 thousand barrels per day is expected in 2025, Lukoil said in a statement.
These indicators will be achieved as a result of drilling and commissioning of new production and injection wells, construction and launching of oil treatment, storage and transportation facilities and facilities for gas treatment and power generation, the Russian upstream company said.
“The experience acquired by the company in the region, the existing infrastructure and cost compensation within the project development from the current production will ensure maximum efficiency of the project implementation,” Lukoil said, adding that the new agreement will ensure the company remains one of the largest investors and employers in Iraq in the coming years.
Lukoil signed a 25-year development contract for the West Qurna-2 field in 2010. First oil at the field was produced in March 2014, and the largest production increment in Iraq was achieved, amounting to 400,000 barrels per day. Currently, the field produces 9 per cent of Iraq’s total production.