Recalling details of today's auction, Fedun said that the LUKOIL management has taken part. Meanwhile, a source close to the auction organizers told RIA Novosti that Promsvyazbank was representing Lukoil's interests at the tenders.
As regards the outlook for Lukoil-ConocoPhillips cooperation, Fedun said: "We are going to implement joint projects in Russia and beyond." Projects in Iraq are also involved, he specified. The development and production contract on the West Qurna field (West Qurna-2) was concluded on March 21, 1997 between the Iraqi Oil Ministry, Lukoil, Russian foreign trade association Zarubezhneft and state enterprise Foreign Trade Association Mashinoimport. The term of the contract on the basis of the production-sharing agreement is 23 years, to be extended for another five years. Lukoil's share in this project reaches 68.5 percent, Zarubezhneft's and Mashinoimport's 3.25 percent each. On the Iraqi side, the SOMO organization (25 percent) is the project participant. The field's proved reserves are estimated at 6 billion barrels of oil. The production of oil accumulated over the contract term may reach 4.8 billion barrels of oil and 56.4 billion cubic meters of oil gas. The planned investments in the development of the project total some 4 billion dollars.
Lukoil is not going to supply oil to China because the transportation and export duties are high, Fedun said. The only Russian supplier of oil to China is NK Yukos, which has reduced supplies since September 28.
