Iraqi Situation Improving

Lukoil vice president, Leonid Fedun, announced at a press conference yesterday that "the situation concerning our project at the West Kurna 2 oil field in Iraq is developing positively for us". However, Fedun refused to comment on how negotiations with the Iraqi side are progressing until LUKOIL President Vagit Alekperov visits Iraq himself.

An agreement to develop the oil field was signed in 1997 between the Iraqi Oil and Gas Ministry, LUKOIL, Zarubezhneft and Mashinoimport. The contract is valid for 23 years and may be extended for a further five years. There are an estimated 6 billion barrels of oil located at the West Kurda 2 oil field and it has been estimated that 4.8 billion barrels could be extracted within the 23-year period and 56.4 billion cubic metres of oil gas. There are plans to invest about USD 4 billion in developing the oil field.