Russia’s Lukoil has successfully completed testing of the fourth well as part of Eridu field (Block 10) appraisal phase in the south of Iraq.

The testing resulted in the commercial flow of dry crude oil that proves the current geological model of Eridu field as effective. ​

Lukoil continues geological exploration at Block 10. For instance, the company plans to drill and test several appraisal wells and to complete 3D and 2D seismic surveys for Eridu field and the block’s southern and central parts, respectively.

Block 10, covering 5.8 thousand square kilometers, is located 150 kilometers west of Basra, 120 kilometers away from West Qurna-2 field.

Interests in the project: Lukoil – 60% (operator), Inpex Corporation (Japan) – 40%. The Iraqi party to the agreement is represented by the state-owned Dhi Qar Oil Company (DQOC).

(Source: Lukoil)

By John Lee.

Iraqi trade minister Mohammed Hashim has reportedly signed a deal on Thursday to import wheat and rice from the United States.

According to Reuters, the agreement covers the first half of 2019.

Meanwhile, Kurdistan 24 reports that a Russian delegation visited Baghdad this week to discuss exporting wheat to Iraq.

(Sources: Reuters, Kurdistan 24)

By  for Al Monitor. Any opinions expressed here are those of the author and do not necessarily reflect the views of Iraq Business News

Putin eyes visit to Baghdad amid growing Russian-Iraqi contacts

Lately, official Russian-Iraqi contacts have been intensifying noticeably.

On Nov. 23, Russian Foreign Minister Sergey Lavrov and Iraqi President Barham Salih met behind closed doors within the agenda of the Mediterranean Dialogue in Rome. On Nov. 20-21, Mikhail Bogdanov, the Russian deputy foreign minister and special presidential envoy for the Middle East and North Africa, met all of Iraq’s key decision-makers when he was in Baghdad. The sides agreed to further develop relations and make efforts to hold a meeting on the highest level.

Russian officials’ increased contacts with their Iraqi counterparts have become a virtual necessity as a result of the changes in Iraq’s domestic politics brought about by the latest electoral cycle. The number, level, and scale of the meetings are indeed exceptional, and all the more so considering the constant foreign trips Iraqi politicians themselves make.

Click here to read the full story.

By John Lee.

Iraq reportedly wants to allow Russian-origin wheat to be bought in its state tenders to supply the country’s massive food rationing programme.

According to Reuters, the Trade Ministry will send a delegation to Russia before the end of the year to study the suitability of its wheat for Iraq’s needs.

Iraq needs between 4.5 million and five million tonnes of wheat annually, of which about two million tonnes is imported.

(Source: Reuters)

By John Lee.

Russia’s Lukoil will start production at Block 10 in 2021, according to a report from Platts.

The Chinese company Bohai has started to drill the 4th well at the block in southern Iraq.

In February 2017 Lukoil announced Iraq’s largest discovery of oil for twenty years at the Eridu field in Block 10, with recoverable reserves in excess of 2.5 billion barrels of crude.

(Source: Platts)

(Picture: Seismic Survey at Block 10)

By John Lee.

Iraqi Airways has reportedly carried 9,200 passengers between Iraq and Russia in the first 12 months of operating flights.

According to rusaviainsider.com, this consisted of 5,200 inbound to Russia and 4,000 outbound.

The majority of those passengers flew between Moscow’s Vnukovo Airport and Baghdad, with the rest flying between Vnukovo and Basra.

(Source: rusaviainsider.com)

Canadian-based SNC-Lavalin (TSX:SNC) has announce that it has been awarded a framework agreement for project support services with LUKOIL Mid-East for the West Qurna phase 2 oil field in Iraq.

Christian Brown (pictured), President, Oil & Gas, SNC-Lavalin, said:

“We continue to build on our long-term relationship with LUKOIL and to help them realize their projects successfully.”

SNC-Lavalin’s scope will include the provision of engineering, design activities and project support services for the development of the Mishrif and Yamama formations of the West Qurna 2 oil field, as well as training and continued professional development for local Iraqi professionals.

The project will be executed in country at the West Qurna phase 2 oil field, as well as from the UAE.

The West Qurna Phase 2 oil field is located in the southern part of Iraq, 65 kilometers north-west of Basra, a major seaport city, and is one of the world’s largest fields. West Qurna Phase 2 is split into three main phases, two phases for the Mishrif formation and one for the Yamama formation.

The required surface facilities for Yamama and Mishrif include major elements such as well pads, oil gathering flowlines, headers and trunklines, a central processing facility and its associated utilities and offsites, oil/gas/liquid petroleum gas export pipelines, additional storage tanks at an existing facility, power plant, water intake and supply pipelines.

(Source: SNC Lavalin)

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)

As part of the XXII St. Petersburg International Economic Forum, Rosneft and the Kurdistan Regional Government of Iraq signed an agreement securing the intention of the Parties to make a detailed analysis of potential gas cooperation options.

The Parties ensure stepwise implementation of the arrangements following the Investment Agreement signed at the XXI St. Petersburg International Economic Forum.

Rosneft will focus its analysis on how to participate in the integrated gas business value chain in the region in order to extract maximum efficiency from investments and operations in such areas as exploration and production, transportation and trading with especial attention given to partnership and project (third party) financing options.

Under the Agreement the Parties will elaborate an integral plan to progress the gas business within the Kurdish Region of Iraq. One step in this plan is the conduct of a pre-FEED of Iraqi Kurdistan’s gas pipeline construction and operation.

This is a key project to the monetization of the exploration and production opportunities Rosneft has been evaluating since signing a Gas Cooperation Agreement with the Kurdistan Regional Government of Iraq at the 10th Eurasian Economic Forum in Verona on 19 October 2017.

Following the outcomes of the integral development plan in terms of the attractiveness and efficiency of the options, Rosneft will decide on how to participate in the regional gas business.

(Source: Rosneft)