Report

rss

Iraq News

Kurdistan

Economy

World

All News

Lukoil plans to boost its oil production in Iraq

Category: Economy

Date: 2020-10-21T10:47:05+0000
Lukoil plans to boost its oil production in Iraq

Shafaq News / Russia’s second-largest producer, Lukoil, is eager to increase its oil production in Iraq once the production cuts of the OPEC+ group end, Egor Zubarev, Managing Director of Lukoil Mid-East, told Bloomberg.

Iraq’s current crude oil production is capped at around 3.6 million barrels per day (bpd) under the OPEC+ pact, but the country needs to make additional deeper cuts by the end of the year to compensate for the lack of compliance with the agreement in previous months. 

Due to the OPEC+ deal, Iraq told the international oil majors working on its large oilfields to cut crude oil production. Exxon, BP, and Lukoil are among the largest foreign producers in Iraq, and all were asked to reduce output.

Still, Iraq has failed to fully comply with the cuts, while the oil price crash has severely constrained its budget, oil sales being the main source of income for the government. Due to the shortage of funds, some projects have been delayed, Bloomberg quoted Iraq’s Oil Minister Ihsan Abdul Jabbar as saying at an online conference on Tuesday.

Lukoil, which operates the large West Qurna-2 oilfield in Iraq, looks beyond this year and plans to increase its production in what is a key region for the Russian company.

In 2019, West Qurna-2 was producing 400,000 bpd, and Lukoil began drilling new production wells as part of the second development phase at the oilfield. The goal of the Russian company was to boost production at West Qurna-2 to 480,000 bpd this year.

However, due to the pandemic and the oil price crash, which resulted in new OPEC+ production cuts, Lukoil cut production at the West Qurna-2 oilfield to 280,000 bpd, according to Lukoil’s Zubarev.

 “The current situation forces us and our partners to revise our plans to see how they correspond to the needs of the time,” Zubarev told Bloomberg in an email.

Lukoil plans to file proposals to Iraq’s authorities “soon” to develop a separate area in southern Iraq known as Block 10, Zubarev said.


related

Iraq jumped to 1st position as oil supplier to India in April

Date: 2022-05-17 11:04:05
Iraq jumped to 1st position as oil supplier to India in April

The dollar exchange rates in Iraq

Date: 2020-09-09 08:17:28
The dollar exchange rates in Iraq

WFP and WB partner on socioeconomic research in Iraq

Date: 2021-02-08 18:49:09
WFP and WB partner on socioeconomic research in Iraq

Iraq allocates +2 million dinars to counter the Avian flu

Date: 2021-07-25 14:39:02
Iraq allocates +2 million dinars to counter the Avian flu

2.97 billion Riyals trade exchange between Saudi Arabia and Iraq during the last 20 years

Date: 2020-11-11 07:48:54
2.97 billion Riyals trade exchange between Saudi Arabia and Iraq during the last 20 years

In cooperation with Chinese company, Iraq to explore hydrocarbon blocs in the Gulf

Date: 2022-01-11 12:06:36
In cooperation with Chinese company, Iraq to explore hydrocarbon blocs in the Gulf

Dollar exchange in Iraq

Date: 2022-03-07 08:45:39
Dollar exchange in Iraq

Iraq Achieves wheat self-sufficiency

Date: 2020-07-26 10:05:07
Iraq Achieves wheat self-sufficiency