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Lukoil starts West Qurna-2 drilling in Iraq

Lukoil has started drilling production wells and building the central processing facility at supergiant West Qurna-2 oil field in Iraq, where it targets production of 500,000 b/d by 2013-14 (OGJ Online, Mar. 22, 2012).

In the current project it plans to drill 23 directional wells with a sliding-rig system from five well pads. The company expects total investment in the West Qurna-2 project to reach $25 billion.

West Qurna-2, covering 340 sq km 65 km northwest of Basra, holds oil reserves estimated at 14 billion bbl.

Lukoil and Statoil won a contract for the project in January 2012 with a bid of a $1.15/bbl remuneration fee at a production level of 1.8 million b/d.

They will be able to recover expenses and receive remuneration once production reaches 150,000 b/d.

Interests are Lukoil 56.25%, state-owned North Oil Co. 25%, and Statoil 18.75%.


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http://www.ogj.com/content/ogj/en/articles/2012/04/lukoil-starts-west-qurna-2-drilling-in-iraq.html