Russian private-sector firm Lukoil has extended its technical service contract at the 480,000 b/d West Qurna-2 (WQ-2) oil field in Iraq’s southern Basra province by ten years, the company announced 2 November. Lukoil was awarded the field as part of Iraq’s 2009 second licensing round but the field’s plateau production target (PPT) was downsized in 2013 from 1.8mn b/d to 1.2mn b/d and further cut in 2018 to 800,000 b/d by 2030 as Lukoil’s contract was extended to 2035. The firm says that the extension, now to 2045, will help double current capacity, implying around 1mn b/d, closer to its PPT. Almost all WQ-2 production comes from the medium-heavy Mishrif reservoir with a 10,000 b/d pilot project tapping the deeper and lighter Yamama formation in development (MEES, 16 June).
The extension is a boost for the Russian firm’s portfolio in Iraq and will see it become one of the dominant IOCs in the country. In March, Lukoil was given the green light to develop the Eridu discovery on Block 10 in Dhi Qar and Muthanna provinces to reach a PPT of 250,000 b/d, although here a smaller 30,000 b/d pilot production is to commence in 2025 to 2028 (MEES, 10 March). Lukoil is now poised to operate more than 1mn b/d of Iraq’s output by 2030. (CONTINUED - 213 WORDS)