Russia’s Lukoil on 17 January became the first foreign oil investor in Iraq to sign a renegotiated production plateau target agreement with Iraq’s oil ministry. Instead of the originally contracted production plateau target of 1.8mn b/d for its giant West Qurna-2 development, Lukoil will now produce, as expected, at a lower peak of 1.2mn b/d. But the contractual plateau duration has been extended from 13 to 19.5 years and the contract duration from 20 to 25 years.

The Ministry is also talking to lower production targets with BP on its 2.85mn b/d Rumaila project, and Shell for its 1.8mn b/d Majnoun field development – which had been expected to be the first of the mega-project renegotiations to be concluded (MEES, 11 January). And a lower plateau for the ExxonMobil-led 2.825mn b/d West Qurna-1 project is also anticipated to be concluded. The West Qurna-2 deal “reduces the risk of execution of the project while making sure the economics are at the level set for all projects within Lukoil,” says Gati al-Jebouri, Senior Vice-Presdent, at Lukoil Overseas. (CONTINUED - 301 WORDS)