Russian oil group Lukoil is in talks with the Iraqi Oil Ministry to sign a memorandum of understanding (MoU), it has been reported. A consortium led by Lukoil won a contract in 1997 to operate until 2020 in the giant oil fields known as West-Qurna 2, estimated to hold 20 billion barrels in reserves.
However, Saddam Hussein's former government later suspended the contract, accusing Lukoil of not having fulfilled the required conditions. Lukoil aims to reactivate the contract and has said that it is optimistic about the situation in Iraq following the visit of US Secretary of State Colin Powell at the end of January to Moscow.
Lukoil is the leading vertically integrated oil company in Russia. The company's main activities are oil and gas exploration and production, and production and sale of petroleum products.
Lukoil is the second largest private oil company worldwide by proven reserves, enjoying around 1.3 per cent of global oil reserves and two per cent of global oil production.
Source: MENAFN
