Page 16 - FSUOGM Week 43

FSUOGM PROJECTS & COMPANIES FSUOGM

Lukoil eyes output increase

at Iraq's West Qurna-2

IRAQ RUSSIA’S Lukoil intends to increase its oil pro- additional oil production cuts to 400,000 bpd
duction in Iraq once output restrictions imposed below its 3.8mn bpd ceiling in August and Sep-
Production will rise after by the OPEC+ group have been lifted. tember to make up for previous non-compliance
OPEC+ caps have been Speaking to Bloomberg last week, Lukoil with OPEC+ cuts, data suggests that Iraq has yet
lifted. Mid-East’s managing director Egor Zubarev said to make much progress with this.
that the company had cut production to 280,000 Baghdad has been the worst offender among
barrels per day (bpd) from the supergiant West OPEC+’s overproducers and rumours have
Qurna-2 oilfield in accordance with a request been circulating that it is seeking to negotiate an
form the Ministry of Oil (MoO) in Baghdad. exemption from the deal given the economy’s
Last year, output from the asset was running at massive reliance on oil revenues. However, it has
400,000 bpd, with work ongoing to drill new so far faced mounting pressure from Saudi Ara-
wells as part of the field’s phase two development. bia and other OPEC+ members to adhere to the
“The current situation forces us and our part- promised cuts.
ners to revise our plans to see how they corre- Iraqi output has decreased in recent months,
spond to the needs of the time,” he said. though not by anywhere near the total prom-
Lukoil had intended to raise production from ised reduction of 1.06mn bpd. According to the
WQ-2 to 480,000 bpd by the end of the year. Ministry of Oil (MoO), production was 4.07mn
However, Baghdad called on IOCs to cut out- bpd in May, 3.7mn bpd in June, 3.69mn bpd in
put from their southern fields by 350,000 bpd, July and 3.69mn bpd in August. Output rose by
while Basra Oil Co. (BOC), which is responsible around 1.3% during September.
for the southern region, is expected to reduce Meanwhile, Zubarev added that Lukoil
output by the remaining 300,000 bpd. intends to submit proposals to the Iraqi author-
Despite having promised to increase voluntary ities “soon” for the development of Block 10. ™

P16 www. NEWSBASE .com Week 43 28•October•2020