Report: Russia’s Lukoil sees Iraqi oil output falling in ‘16-‘17

MOSCOW, Apr 21 (PRIME) -- Lukoil Overseas, a foreign project operator for Russian oil major Lukoil, expects a significant decrease of oil output in Iraq and the company’s fields there in 2016-2017 due to low oil prices, Senior Vice President Gati Saadi Al-Jebouri said Tuesday, Bloomberg reported.

All international oil companies are revising their oil production plans in the country in order to ensure cost recovery payments. “It will lead to lower production,” Al-Jebouri said, adding that Lukoil has decreased production at its West Qurna-2 field by 50,000-75,000 barrels per day in order to support the quality of the Basra Light oil.

Oil from the West Qurna-2 field is rather heavy and it makes the Basra Light oil also heavier. As a result, Iraq asked Lukoil and other companies to decrease output, he said.

Reserves of the West Qurna-2 field stand at 35 billion barrels of oil. Total Lukoil’s investment in the field’s development will reach U.S. $45 billion, Al-Jebouri said. The company also develops the Block 10 in the country.

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