Lukoil: there are risks for business because of the conflict in Iraq
The largest private Russian oil producer Lukoil says there are risks for the project West Qurna-2 in Iraq due to the continuation of the military actions against the Islamic state. This was announced by Lukoil in the note regarding the issue of Eurobonds.
The prospectus states that the activity of Lukoil in Iraq regarding the development of the oil field can be negatively affected by the government intervention, terrorist activities and violent conflicts.
“We may not be able to maintain or increase our production levels and recoup our investment today,” – said Lukoil.
The company still controls the risks that are associated with the Iraqi projects in Iraq, also said in the note.
Oil reserves of West Qurna, which are extracted by the company, can be estimated at about 14 billion barrels. 75 percent of the project West Qurna-2 is under Lukoil’s control. Iraqi state-owned North Oil Company controls 25 per cent.
As of June 30 this year, Lukoil has rated its investment in the project at $ 7.2 billion.