The Russia energy giant Lukoil and its US partner Conoco-Phillips have stepped up their bid to win the development contract for the West Qurna field in Iraq by submitting a higher production target for the field.
Reuters reported that the consortium were forced into action after the rival bid by ExxonMobil had submitted a pledge to raise output to 2.1 million barrels per day. This figure is around 600,000 bpd higher than that of the Lukoil/ConocoPhillips consortium.
“They have raised the production target. The new proposal was submitted and companies expect to hear back from the oil ministry on Monday or Tuesday,” an industry source is quoted by Reuters as saying.
Both consortia have reduced the remuneration fee they were prepared to accept to US$1.90 a barrel. The Lukoil/ConocoPhillips JV initially wanted $6.49 while ExxonMobil had asked for $4.
Industry sources believe that ExxonMobil are leading the race to win the West Qurna contract.
