Iraq, Badra (AFP Photo / Ahmad Al-Rubaye)
The Russian oil producer Lukoil has turned down an offer from the
Iraqi government to replace Exxon Mobil at the West Qurna-1 field in
Iraq.
The development of a large-scale project such as West Qurna 1 would
bring additional risks to the company, which is already developing the
West Qurna 2 project in Iraq, which requires up to $5bn investment, said
Andrey Kuzyaev, head of Lukoil Overseas.
Earlier this year
Baghdad considered inviting Russia's Lukoil and Gazprom Neft – both
already operating a number of projects in the country, instead of Exxon
Mobil to develop the West Qurna-1. Iraqi authorities were angered by
ExxonMobil’s deal signed with the Kurdistan regional government ,
sources in the industry told RT.
In 2010 Exxon and the
semi-autonomous Kurdistan regional government signed a number of deals
to develop six blocks in West Qurna without Baghdad’s approval. Outraged
by the move the Iraqi authorities threatened the American company with
sanctions.
Later ExxonMobil told the Iraqi government it wants
to give up the $50 billion project of West Qurna-1. Iraq expects Exxon
to complete the sale of its shares in West Qurna-1 by the end of the
year.
Meanwhile CNPC unit Petrochina and several other companies
such as British BP and Italy's ENI have been reportedly negotiating for
Exxon's 60% stake in order to develop West Qurna-1 in partnership with
Royal Dutch Shell, according to Iraqi sources
Currently Lukoil
holds a dominant 75% stake in the West Qurna-2 oil field. It is
developing the oil deposits in partnership with Iraqi state-run North
Oil Company since Norway’s Statoil left the project.
The West
Qurna field is believed to hold about 43 billion barrels, making it the
second largest oil field in the world after Ghawar in Saudi Arabia.
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