Iraq seals oil deal with Russia's Lukoil-led group

Iraq signed a contract on Sunday with Russia's Lukoil and Norway's Statoil to develop one of the world's biggest oilfields.

Iraq seals oil deal with Russia's Lukoil-led group

Iraq signed a contract on Sunday with Russia's Lukoil and Norway's Statoil to develop one of the world's biggest oilfields.

The deal was signed Sunday. It has an option to be extended for an additional five years.

Lukoil and Norway's Statoil sealed the 20-year deal to develop West Qurna Phase Two, a 12.9 billion barrel supergiant oilfield in the south, in an auction in December.

Statoil, which has a 25 percent stake in the firms' side of the venture, has said it would invest $1.4 billion over 4-5 years.. Lukoil put the investment "in the billions".

Oil Minister Hussain al-Shahristani said the targets were contractual and had to be achieved. "The companies are obliged to implement them otherwise they should pay huge fines worth billions of dollars," Shahristani told Reuters on Sunday.


Agencies

Last Mod: 31 Ocak 2010, 16:10
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