Following previous reports that Statoil was looking to exit Iraq, Reuters reports that the Oil Ministry has approved the Norwegian company’s sale of its interest at the West Qurna 2 concession to Lukoil.
Statoil currently hold an 18.75% stake in the technical services contract, and after selling to Lukoil, the Russian company will hold 75% with Iraq’s South Oil Company holding the remainder.
The West Qurna deal was the most stringent struck by IOCs in Iraq, with a fee per barrel remuneration of just $1.15 before tax. Baker Hughes has started its drilling program at the field.Â
Statoil and Lukoil were also viewed by analysts as unlikely bedfellows, and the Norwegian company is concentrating on a renaissance in North Sea exploration and a shake-up of its technology offering.
