Lukoil has signed an addendum to the contract for development and production of oil in the West Qurna-2 field in Iraq. The scope of work for the West Qurna-2 project will now include the Tuba-Fao pipeline construction and will provide for changes in the procedure of the project investors’ costs recovery. Changes concerning the cost recovery will allow investors to recover their costs within a shorter period of time, in the same year when respective costs were incurred. The Tuba-Fao Project provides for the construction of two pipelines, up to 120 km each, between the existing Tuba Tank Farm, and the Fao Tank Farm, the main export hub in Iraq located on the Persian Gulf coast. Pre-FEED (preinvestment study) has already been completed for the Tuba-Fao Project, which foresees a direct connection of the pipeline to single-point mooring facilities and upgrading the pumping systems of the Tuba Tank Farm.
Lukoil it the major stakeholder (75%) in the West Qurna 2 oil field, in partnership with the Iraqi State North Oil Company (25%). The field development project aims to reach 1.8 mb/d in two phases, 700,000 bbl/d from the Mishrif phase, by 2016, and 1.1 mb/d from the Yamama phase by 2017.