West Qurna 2


New Tenders for Development of West Qurna-2

By John Lee.

Russian oil company Lukoil has published tenders for two projects at its West Qurna-2 oilfield:

Interested companies have until 23rd July to apply for documents, and bids will be accepted until 23rd August.

(Source: Lukoil)

New Development Plan for West Qurna-2

LUKOIL and the Basra Oil Company (BOC) signed a Development Plan for the West Qurna-2 field that provides for an oil production plateau of 800 thousand barrels per day.

According to the Plan, the oil production of 480 thousand barrels per day will be reached in 2020 and 800 thousand barrels per day is expected in 2025.

These indicators will be achieved as a result of drilling and commissioning of new production and injection wells, construction and launching of oil treatment, storage and transportation facilities and facilities for gas treatment and power generation.

The experience acquired by the Company in the region, the existing infrastructure and cost compensation within the project development from the current production will ensure maximum efficiency of the project implementation.

The parties noted that due to the agreements reached, LUKOIL will remain one of the largest investors and employers in Iraq in the coming years. ​

(Source: Lukoil)

Lukoil reports Less Compensation Oil from West Qurna-2

By John Lee.

Russian oil company Lukoil has said that lower volumes of compensation crude oil from the West Qurna-2 project in Iraq had “a negative impact on EBITDA dynamics“.

In its audited consolidated financial statements for the full year of 2017, it added that net of this project, EBITDA increased in 2017 by 17.8 percent year-on-year.

(Source: Lukoil)

LUKOIL completes 3D Seismic Survey at West Qurna-2

Russia’s LUKOIL has reported that it has completed a field 3D seismic survey at West Qurna-2 field.

The survey covered an area of about 450 square kilometers. The Company has fulfilled all of its contractual obligations to the Ministry of Oil of Iraq.

The high-quality seismic data obtained are required for the updating of the field’s geological model, both for the discovered formations and prospective horizons. The field data will soon be submitted for processing to a contractor, BGP, a division of the China National Petroleum Corporation (CNPC).

3D seismic acquisition at West Qurna-2 began in 2010. However, the completion of the field stage of work was delayed because foreign contractors did not have any work experience in the region. In 2014, following long negotiations, the Iraqi Oil Exploration Company (a division of the Ministry of Oil of Iraq) was chosen as seismic acquisition contractor.

In spite of high security requirements in the area of work, the contractor managed to accomplish all goals of the survey. Every day, about 1,000 people, including up to 700 workers from local tribes residing in the contract area, were involved in the operations at their height.

(Source: Lukoil)

Lukoil to Increase Production at West Qurna

By John Lee.

Russia’s Lukoil is looking at different ways to increase oil production at West Qurna-2 from the current level of 400,000 barrels per day to 1.2 million bpd.

The company’s vice president in the region, Gati Al Jebouri [Gati Saadi Al-Jebouri] (pictured), told Gulf News:

“Going forward, we are in discussions with Iraqi authorities on how we can develop the second phase of West Qurna-2 and depending on those discussions we will determine how much investment is necessary to reach 1.2 million barrels per day of production.”

(Source: GulfNews)

Lukoil to Invest $1.5bn in West Qurna-2 this year

By John Lee.

Lukoil boss Vagit Alekperov (pictured) told reporters on Monday that investment in the West Qurna-2 oil field is estimated at $1.5 billion in 2017.

He said the company has already been compensated for about $6 billion of historical costs, adding that he expects to negotiate a revised contract with Iraq with the aim of getting additional profit.

(Source: Russian Construction)

Lukoil updates on West Qurna-2

By John Lee.

In its third-quarter and nine-month results announced on Monday, Russia’s Lukoil reports that its capital expenditures for the first nine months of 2016 were 19.1 percent lower than in the corresponding period of 2015.

This decrease partly attributed to moving to the maintenance oil production stage at the West Qurna-2 project in Iraq.

But the company’s results were also impacted by a decrease in the compensation amount from West Qurna-2

(Source: Lukoil)

Emerson Expands Support Facility in Iraq

US-based technology and engineering company Emerson has officially opened its expanded facility in Al Majal Business Park in North Rumaila.

The company moved from its existing facility in Albradheya, Basrah to the new facility to increase its capabilities and address the needs of its continuously expanding installed base.

The Al Majal facility will serve as a focal point of Emerson’s sales, project execution, lifecycle services, and educational services in Iraq. It is located in Iraq’s Oilfield Protection Force (OPF) protected area, in the middle of all major oil fields in the country such as Majnoon, West Qurna and Rumaila, allowing Emerson to work closer to national and international oil companies operating in the region. The facility will house a team of 50 Iraqi national engineers, which could double over the next years as the business grows.

The Emerson facility consists of offices, meeting spaces, and a demonstration & training room equipped with Emerson’s portfolio of technologies, including measurement instrumentation, final control devices, control systems, and safety systems. It has access to shared facilities within Al Majal Business Park including an education center that will deliver a wide range of Emerson training courses in automation, and a service center that will support Emerson’s customers throughout the lifecycle of their operations.

Commenting on the inauguration of the facility, Dave Tredinnick, President of Emerson Automation Solutions, Middle East and Africa, said:

Emerson is committed to building an extensive service infrastructure in Iraq to support national and international companies. We have a significant installed base in the country, and this continues to expand with new project awards.

“The new facility in Al Majal Business Park will allow us to act fast and proactively so that we can help our customers when and where they need us, and maintain a sustainable organization of Iraqi-staffed personnel.

Loay Almalaieka, Country Manager of Emerson Iraq, said:

“Our new location in Al Majal is an excellent choice for Emerson’s expanding operations in Iraq due to its proximity to oil & gas fields, airport, and seaport, and the park’s community atmosphere complete with living, leisure, and healthcare facilities.

“It will provide a comfortable and homely environment to Emerson’s personnel as they provide critical services and support to our customers’ operations.”

(Source: Emerson)

Lukoil Lobbies for more favourable Contract

By John Lee.

Oil Minister Jabar Ali al-Luaibi (Allibi) met the President of Russia’s Lukoil, Vagit Alkpirov [Alekperov], at the his office on Sunday.

The Minister confirmed plans to develop the production and investment gas this year and next year, at called for Lukoil to participate in new projects to be started next year.]

Mr Alekperov said that its existing service contract for West Qurna 2 needs to be amended “to establish conditions for further investments to the project.

Improving the economic parameters of the project will allow the Company to increase oil production at West Qurna-2 which is also beneficial for Iraqi partners,” he said.

During the meeting the parties also discussed issues of associated petroleum gas utilization at West Qurna-2, LUKOIL’s participation in exploration projects in Iraq, the training of local oil and gas specialists, and enhancing cooperation in oil trading.

(Sources: Ministry of Oil, Lukoil)