LUKOIL President holds negotiations in Baghdad

Parties discussed the progress of West Qurna-2 field development and Block-10 exploration, as well as other potential promising projects in Iraq, in which LUKOIL may participate.

The construction of main production facilities – Central Processing Facility, Gas Turbine Power Plant, Export Pipeline and Tank Farm – is currently nearing completion in the West Qurna-2 field. The progress includes drilling of 23 deviated wells in 2013, completion of wellpads' infrastructure development and ongoing pre-commissioning operations.

West Qurna-2 field is located 65 km northwest of the large seaport of Basra and is one of the largest undeveloped fields in the world with recoverable reserves amounting to about 14 billion barrels of oil. As previously reported, an amendment to the Contract was signed in January of 2013, which, among other things, established the new target production plateau of 1.2 million of barrels of oil per day for 19.5 years and the extension of the total contract duration to 25 years.

The Contract for Block-10, located 120 km west of Basra, was signed in November of 2012. The Block shall be developed by a consortium of LUKOIL Overseas (60%) and Japanese INPEX Corporation (40%) with demining operations currently under way.