Baker Hughes, Lukoil, Sign $160m Iraq Deal

Baker Hughes will drill 23 new wells in Iraq’s largest oil field, West Qurna 2, after signing a contract with Russia’s second largest oil company, Lukoil.

Baker Hughes will use five rigs using advanced technology to drill the wells to a depth exceeding 4,000 meters, the statement said.

"Drilling will begin in the fourth quarter of this year and the projected scope of work will be completed within two years," a statement released by Lukoil said.

The company didn't reveal costs of the contract, but a person familiar with the project told Dow Jones in July that the contract would be worth around $160 million.

The oil field is believed to hold 43 billion barrels of as of yet untapped oil, making it the second largest field in the world.

Lukoil were awarded the contract to develop the field in 2009. It projects that by 2012 they will be pumping 120,000 barrels per day (bpd) raising to 1.8 million within 13 years.

(Sources: MarketWatch, AKnews)

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