Lukoil and Shell to Replace Exxon at West Qurna 1?

Russian news agency RBC Daily reports that Lukoil, Russia’s second-largest oil producer, is looking to expand its business in Iraq through buying part of ExxonMobil‘s 60% stake in the West Qurna 1 field.

If the deal goes ahead Lukoil would hold 37.5% of the business. It is already in partnership with Norway’s Statoil in the development of the West Qurna-2 oil field.

Vice CEO Leonid Fedun says Lukoil is interested in developing West Qurna-1.

The report quotes Alexey Kokin, analyst in Uralsib Capital, as saying “ExxonMobil is probably giving up the project, because its economics are not clear yet. It requires $15-20 billion to be invested in the next 20 years.”

Anglo-Dutch Shell is reportedly going to buy the rest of ExxonMobils’s share. The purchase would increase Shell’s share from 15 to 37,5%. The Iraqi state North Oil Company holds 25% of the project.

(Source: RBC Daily)

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