Russia’s Massive Oil Projects In Iraq
In Iraq, a seldom mentioned and noteworthy oil cooperation is carried out between Baghdad and Moscow. Russian companies, namely Rosneft and Lukoil have developed new oil fields in Iraq.
A notable project is Lukoil’s West Qurna-2.
West Qurna-2 field is located in the southern part of Iraq, 65 kilometers north-west of Basra, a major seaport city, and is one of the world’s largest fields. The field’s initial recoverable reserves come to around 14 billion barrels. Its total geological reserves sit at 35 billion barrels of oil.
On December 12, 2009 the consortium of PJSC LUKOIL and Statoil, a Norwegian company, was awarded a contract for the development of West Qurna-2 field, one of the world’s largest fields. On January 31, 2010, a services contract was signed for the development and production at West Qurna-2. The contract was ratified by the Cabinet of Ministers of the Republic of Iraq.
A supplement agreement to the contract was signed in January 2013 that outlined the target contractual production (1.2 million barrels of oil per day) for the target production period of 19.5 years, and a 25-year extension of the contract term.
It has been producing oil since March 29th, 2014.
This was a result of short-term and large-scale field development. This included mine clearance, drilling of 48 production wells, preparation of 5 well sites and construction of large production facilities: oil treatment plants with a capacity of more than 400 thousand barrels per day, a gas turbine power plant with a capacity of 126 MW , water intake on the Euphrates River, an export pipeline of 102 km in length, additional reservoirs at the oil terminal with a total volume of about 200 thousand cubic meters, as well as numerous infrastructure facilities, including a shift camp for 1000 people, access roads, infield pipelines, a security perimeter and more.
In total for 2014-2020. More than 120 million tons of oil were produced. 120 production wells and 48 injection wells were drilled. The current production level is 400 thousand barrels per day from the Mishrif reservoir.
The current level of production is 400 thousand barrels per day from the Mishrif formation, which is almost 10% of Iraqi oil exports.
Since the start of the Service contract, LUKOIL has invested about $ 9 billion in the project.
In 2019, LUKOIL commenced drilling of new production wells as part of the second development phase. The Сompany concluded contracts to drill 57 production wells, including 54 wells at Mishrif formation and 3 wells at Yamama formation. The drilling campaign will ramp up production at West Qurna-2 from the current level of 400 thousand barrels per day to 480 thousand barrels per day in 2020.
75% of the project is under Lukoil’s ownership. The other 25% are owned by the North Oil Company (NOC), a state-owned company being a part of the Iraqi Oil Ministry. Notably, NOC does not incur any costs receiving only its share (25%) in the remuneration.
Another notable oil field developed and discovered by Russia is the Salman oilfield in Block 12 in Iraq.
https://southfront.org/russias-massive-oil-projects-in-iraq/