MOSCOW, April 24 (RIA Novosti) – Russia's largest private oil company LUKoil is exploring the possibility of joint participation with Zarubezhneft in the Nassiriya Integrated Project tender in Iraq, the company has said.
The project involves the development of a giant oil deposit and construction of an associated refinery.
In addition, the company signed a memorandum of understanding in Baghdad earlier this month with the Iraqi government and the Oil Exploration Company. The memorandum stipulates the possibility of exploration in the 17,000-square-kilometer Western Euphrates block.
A decision on the preparation of the contract will be taken once an examination of the area is compelted. Zarubezhneft is acting as LUKoil’s partner on the Russian side, the report said.
In addition, LUKoil began a 2-D seismic survey April 10 at Block 10 in southern Iraq. The mandatory exploration program at the block will last for five years with a possible extension for two additional years and also includes the drilling of an exploratory well. The drilling of the first exploratory well at Block 10 is scheduled to begin in the first quarter of 2016.
"LUKoil is currently exploring opportunities to participate in new projects in Iraq," according to the statement.
LUKoil began oil extraction this March at the Iraqi oil field West Qurna-2, with extractable reserves estimated at 14 billion barrels. The share of LUKoil will account for about 10 million tons of oil per year. During the time of the project’s implementation, the Russian company could revenue of $90 billion from the sale of the oil.