Page 12 - MEOG Week 46 2021

MEOG PROJECTS & COMPANIES MEOG

Lukoil submits plans for Eridu development

IRAQ IRAQ’S Ministry of Oil (MoO) said this week target of 8mn bpd from the current 5mn bpd.
that it has received a development plan for the Lukoil’s other asset in the country, a 75% stake
Eridu oilfield from Russia’s Lukoil, envisaging in the supergiant West Qurna-2 (WQ-2) field,
peak production of 250,000 barrels per day will play an even more significant role in Iraq’s
(bpd). expansion programme, with plans underway to
Eridu, which is located in the southern Block increase output at the field as the company eyes
10 concession, was discovered in 2016 and is an ambitious long-term plateau target.
estimated to contain 7bn-12bn barrels of oil. The field’s production plateau was previ-
Lukoil is the operator and holds 60% in the field’s ously revised downward first from 1.8mn bpd
technical services contract (TSC) in which it is to 1.2mn bpd and then to 800,000 bpd, though
partnered by Japan’s Inpex Corp., which has the the timeline for the latest revision has also been
remainder. extended from 2025 to 2030.
The companies applied to state-owned Dhi Following reports earlier in the year that the
Qar Oil Co. (DQOC) “for commerciality of Russian company had been looking to divest
reserves and filed a preliminary proposal on the part or all of its stake in WQ-2 amid interest from
development of the Eridu oilfield within Block Chinese companies, Lukoil said in August that it
10,” according to the MoO. hoped to achieve phased production increases.
This follows the announcement by Lukoil in The company’s VP for finance, Pavel
July that it had agreed terms with the MoO for Zhdanov, said that Lukoil hoped to reach
Eridu’s development, targeting an initial rate of 480,000 bpd, an increase of around 80,000 bpd,
30,000 bpd by 2024. The maximum remunera- as the Phase 3 Yamama expansion comes into
tion rate for Block 10, which was awarded in the play. This comprises around 450,000 bpd from
fourth licensing round, is $5.99 per barrel of oil the Mishrif formation and 10,000 bpd from
equivalent (boe), though these terms are also the Yamama formation following a pilot pro-
understood to be subject to ongoing amendment gramme. The additional 350,000 bpd will be
discussions. achieved through the Yamama expansion.
In a press release, Lukoil said: “Geological “We still plan to reach the target of 800,000
exploration proved significant reserves, mak- bpd by 2030, but it is probably too early to talk
ing Eridu the largest discovery in Iraq in the last about this,” Zhdanov added.
twenty years.” The company also announced this week that
The 250,000 bpd plateau production level is it had reached cumulative production at WQ-2
seen being reached by 2027, the same year Bagh- of 1bn barrels from the field’s conservatively esti-
dad envisages achieving its ambitious oil output mated 14bn barrel reserves.™

P12 www. NEWSBASE .com Week 46 17•November•2021