Iraq: Statoil increases stake in Iraq's West Qurna 2 oil field
03 Jan 2010
Lukoil and Statoil initialised the contract with Iraqi authorities for the West Qurna 2 field. Lukoil and Statoil have agreed to adjust the ownership split, increasing Statoil’s share from 15% to 25%. Lukoil’s share is reduced to 75%.
Lukoil and Statoil secured the winning bid on the West Qurna 2 field during the second licensing round in Iraq 11 and 12 December. Based on thorough analysis and an optimised development plan for the field, Lukoil and Statoil were able to bid a production plateau of 1.8 million barrels per day and a remuneration fee of 1.15 dollars per barrel.
The increased Statoil share will create a more balanced consortium and confirms Statoil’s confidence in this being an important position for the company. An Iraqi state partner will be included in the consortium with a share of 25%, reducing Lukoil and Statoil shares to 56.25% and 18.75%.
After the contract now has been initialised it will now be subject to political approval in Iraq before final signing of the contract. The adjustment in ownership split will not entail any compensation to be paid, but Statoil will get a proportional higher stake in the project.
Location of West Qurna 2 oil field (Source: Wood Mackenzie)