Lukoil’s president, Vagit Alekperov recently announced the Russian oil company is in talks with Shell to participate in the development of of a petrochemical complex in Iraq. Lukoil’s management has decided to aid costs by using funds from the oil produced at their oil fields in Iraq at their West Qurna-2 field, the largest field in Iraq.
Mr. Alekperov announced: “Yes, today we are in talks on making adjustments to our service contract and to bring the gas component outside, on the basis of the gas more unique factor West Qurna-2. 17% of this gas is unique gas and would be a crime to burn it. To create a petrochemical complex - now the negotiations are under way with Shell and with Total. The Iraqi side supports our efforts.”
West Qurna-2 was discovered in 1973 using 2D seismic acquisition drilling techniques by Soviet geologists and is over 300 square meters.
Currently, Iraqi-Government owned South Oil Company and oil operators such as Lukoilm which holds 75% and the Iraqi North Oil Company which owns 25%