Shmatko to discuss energy cooperation in Iraq
Interfax, 08.09.2009
Russian Energy Minister Sergei Shmatko will discuss energy cooperation in Iraq on September 7-8, the ministry said on Monday.
Russia wishes to develop trade and economic cooperation with Iraq, the ministry said. "An increase of trade and diversification of interaction are our key goals," the ministry cited Shmatko.
LUKOIL head Vagit Alekperov said earlier that the Russian delegation would discuss the participation of Russian companies in the second tender for oil production licenses. The visit would not result in the signing of any documents, he noted.
The Russian delegation includes Stroytransgaz head Alexander Ryazanov, LUKOIL Vice-President and LUKOIL Overseas President Andrei Kuzyayev and managers of other leading oil and gas companies.
LUKOIL together with ConocoPhillips applied for the development of the West Qurna I oil field at the first tender. The tender results were summed up in late June. The tender offered the development of six oil fields and two gas fields, but the only contract granted was that of Rumeilah. BP and CNPC got that contract.
In 1997, LUKOIL and the Iraqi Oil and Gas Ministry signed a contract on the production-sharing development of West Qurna 2. The Russian company was unable to start works because of sanctions imposed on Iraq after the Gulf War. Iraq said in late 2002 that the contract was invalidated because of LUKOIL's failure to meet its terms.LUKOIL voiced the intention to hold negotiations with the new Iraqi administration and to assign 17.5% of its share to ConocoPhillips in case the negotiations were successful.
West Qurna 2 is one of the largest fields in the world with appraised reserves of six billion barrels. The production-sharing contract was due to expire in 2020. In that period, it would be possible to produce 4.8 billion barrels of crude and 56.4 billion cubic meters of gas. Capital investment in the field may near $4 billion.
