Russia's Lukoil announced on Friday that it has it awarded a 3D seismic contract at Iraq's West Qurna Phase 2 oil field to Terra Seis Trading Ltd. [Terraseis] (TSTL).
TSTL has been conducting seismic exploration in Iraq since 2005 and "possesses vast operational economic and legal experience, and is well aware of the country’s natural and climatic conditions".
The contract is set to run 9 months with a 3D seismic exploration scope of 540 square kilometers, but the value of the contract has not been revealed.
The pilot survey is scheduled for the beginning of December, while the seismic convoys will enter the contract area in the middle of December.
The data obtained will allow the Company to clarify the geological structure of the area under exploration and to develop a comprehensive seismic-facial field model.
The Russian company along with Norway's Statoil won the right to develop the 13-billion barrel West Qurna Phase 2 in Iraq's second postwar licensing auction held in Baghdad in December of last year.
Under the terms of the 20-year-long service contract, Lukoil and Statoil are required to pump at a rate of 1.8 million barrels a day for payment of $1.15 a barrel. That production target needs to be reached in 2017.
Lukoil holds a 56.25% stake in the project, Statoil 18.75% and the Iraqi state company holds the remaining 25%.
(Sources: Lukoil, Wall Street Journal)