OAO Lukoil Holding, Russia's largest privately controlled oil producer, said it expects to reach an agreement to develop the West Qurna oil fields in southern Iraq soon.
Despite previous statements from the Iraqi government saying that Saddam Hussein-era contracts with Lukoil on West Qurna are canceled, the company is readying itself for exploration of the field, which may hold estimated reserves of between 11 billion and 20 billion barrels.
Officially, the company had put the project on ice until a new and long-delayed oil law is adopted by Iraq's parliament. Russia's Ministry of Foreign Affairs considers the contract temporarily suspended but the Iraq government has said it is canceled. Hussain al-Shahristani, the Iraqi oil minister, was reported as saying November that the field will be opened to new bidders, perhaps as early as next year.
However, Lukoil still hopes to produce crude from West Qurna.
Dow Jones Newswires
No comments:
Post a Comment