His ministry has not to this day renewed any partnership contract the fallen regime made with overseas companies, he said in an interview the Iraqi-based Al-Sabah carries in today's issue. As the media say, the LUKoil has blueprinted West Qurna development, on which it would join hands with the USA's ConocoPhillips. Assumptions of the present government approving LUKoil plans are a downright hoax. The government is evaluating contracts made under Saddam Hussain to check whether they promote Iraqi interests or not, says the minister.
The Iraqi Petroleum Ministry and Russia's LUKoil, Zarubezhneft foreign economic company and Machinoimport government foreign economic company signed a development and production contract, March 21, 1997, for a second stage of the West Qurna oilfield, known as West Qurna 2. The production-sharing contract has a term of 23 years, and may be prolonged for another five. The LUKoil accounts for 68.5 per cent, Zarubezhneft and Machinoimport for 3.25 per cent each, and the host country's SOMO 25 per cent.
Al Qurna explored and blocked-out reserves make six billion barrels, and it is expected to yield 4.8 billion barrels plus 56.4 billion cubic metres of casing-head gas while the contract remains valid. Roughly four billion US dollars has been earmarked to develop the field.
