Lukoil is seeking quick approvals of its tender offers as the Russian supermajor looks to get drilling at the West Qurna II bloc before the year is out.
“We hope that by October, the Iraqi ministry will approve all our tender offers”, the London-listed company’s chief executive Vagit Alekperov, Lukoil’s CEO, told Dow Jones on Friday that he hopes to see contracts approved “by October,” according to a Dow Jones report.
The phase II bloc is estimated to hold almost 13 billion barrels of reserves, which Lukoil – in conjunction with Norway’s Statoil – hopes to raise at a rate of 1.8 million barrels per day over the life of their 20-year service contract.
Lukoil owns a 56.25% interest in the field, while Iraqi state-owned North Oil Company owns a 25% stake and Norway’s Statoil holds the remaining 18.75%.
Lukoil and Statoil will be keen to ramp up production rapidly as they won the technical service contract at a tight fee margin of $1.15 per barrel.
