Russian oil company Lukoil has commenced drilling of new production wells at West Qurna-2 field as part of the second development phase.

The company has so far concluded contracts to drill 57 production wells, including 54 wells at Mishrif formation and 3 wells at Yamama formation.

The drilling campaign will ramp up production at West Qurna-2 from the current level of 400 thousand barrels per day to 480 thousand barrels per day in 2020.

To deliver the project Lukoil uses an approach to cluster drilling which envisages erection of two drilling rigs at one well pad.

This approach is new for Iraq and will provide for significant field development speed up and production growth within the shortest time.

Over five hundred Iraqis, residing in proximity to West Qurna-2 field, will be employed for the drilling campaign.

(Source: Lukoil)

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)

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)

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)

By John Lee.

Russian oil company Lukoil has said it will present its plans t0 develop the West Qurna 2 oil field to the Ministry of Oil by the end of the month.

Company boss Vagit Alekperov (pictured) told reporters that his company is negotiating regarding production volumes, timelines, and investment.

(Source: TASS)

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)

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)

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)

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)