Iraq, Lukoil finalize West Qurna 2 production drop
Lukoil has extended the life of its West Qurna 2 deal, decreasing the production target and leaving the remuneration fee unchanged.
Lukoil President Vagit Alekperov (center right), South Oil Company Director General Dhia Jaffar (center left) and Petroleum Contracts & Licensing Directorate Abdul Mahdi al-Ameedi (left) sign the ammendment to the West Qurna 2 contract Jan. 17, 2013. (source: Oil Ministry)
BAGHDAD - Russian oil major Lukoil has renegotiated its contract for the West Qurna 2 oil field, reducing the production target from 1.8 million barrels per day (bpd) to 1.2 million bpd.
The move represents a first step by the Iraqi Oil Ministry to rectify its overly ambitious production targets and to preserve the health of the country's massive reservoirs. Under a series of contracts awarded between 2009 and 2011, the ministry had been targeting more than 13.5 million bpd of production capacity within seven years – a goal that has now been reduced to around 9 million bpd.
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