Iraq approves $100 mln oil contract with Russia’s LUKoilOctober 9, 2012 - 20:00 AMT PanARMENIAN.Net - The Iraqi government has approved a contract worth at least $100 million for Russian oil producer LUKoil and its partner Japan’s Impex Corp. to explore and produce oil at bloc 10 in southern Iraq, LUKoil said on Tuesday, October 9, according to RIA Novosti. “The contract is expected to be signed in November this year,” LUKoil said in a statement. Iraqi Prime Minister Nuri al-Malaki is currently in Moscow on a visit. Lukoil and Inpex were awarded block 10, located 70 miles (120 km) west of Basra during a licensing auction in late May. Lukoil's overseas arm has a 60 percent share in the field while Inpex holds the remaining 40 percent. Under the terms of the Iraqi government tender, minimum outlays on geological prospecting for the field should be no less than $100 million. If promising oil reserves are found, investment could reach $300 million. Block 10 covers an area of 2,123 square miles (5,500 sq km) in the oil-rich region, where international oil majors are developing giant oil fields, including Rumaila, West Qurna-1, and the West Qurna-2 fields. Block 10 is one of the most attractive, as discovery of large oil reserves there was highly probable, LUKoil foreign projects head Andrei Kuzyayev said in June. LUKoil is also developing Iraq's giant West Qurna-2 field, one of the world's largest oilfields, with recoverable reserves estimated at 12.9 billion barrels of oil. LUKoil says it plans to launch production at West Qurna-2 in early 2014. LUKoil participated in the first stage of West Qurna-1 development project and signed a contract with the former Saddam Hussein regime to develop the second stage, but the deal was frozen in 2002. The Iraqi government and LUKoil agreed in 2008 to renew cooperation. The list of Russian energy firms operating in Iraq also includes Gazprom Neft, the oil arm of Russian energy giant Gazprom, which operates the Badra deposit with a 30-percent stake in the project. Badra's reserves are estimated at about three billion barrels of oil. Production is scheduled to start in 2013. Top stories Authorities said a total of 192 Azerbaijani troops were killed and 511 were wounded during Azerbaijan’s offensive. In 2023, the Azerbaijani government will increase the country’s defense budget by more than 1.1 billion manats ($650 million). The bill, published on Monday, is designed to "eliminate the shortcomings of an unreasonably broad interpretation of the key concept of "compatriot". The earthquake caused a temporary blackout, damaged many buildings and closed a number of rural roads. Partner news | Scholz hopes Armenia-Azerbaijan peace treaty will be signed this year German Chancellor Olaf Scholz hopes that a peace treaty between Armenia and Azerbaijan will be signed this year. Ucom equips four bus stops in Ijevan with free Wi-Fi Ucom now provides free Wi-Fi coverage in smart bus stops in four communities of Ijevan. Armenia, Russia discuss life extension of Metsamor nuclear plant Issues regarding the extension of life of the 2nd power unit of the Armenian Nuclear Power Plant were discussed in Yerevan. Armenians stage more campaigns against territorial concessions to Azerbaijan Protesters blocked more roads across Armenia on Friday, April 26 in continuing attempts to scuttle territorial concessions to Azerbaijan. |