By John Lee.
Preliminary principles agreements have been signed covering the transfer and development of several oil fields in southern and central Iraq.
- The first agreement was signed between Basra Oil Company (BOC) and US oil major Chevron for the transfer of management of the West Qurna 2 field.
- A second agreement was signed between Dhi Qar Oil Company (DQOC), North Oil Company (NOC), and Chevron to:
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- Develop the Nasiriyah oil field;
- Develop four exploration blocks in Dhi Qar province;
- Develop the Balad oil field in Salahaddin province.
In parallel, Basra Oil Company and Russia's Lukoil signed a settlement agreement under which the West Qurna 2 contract will be transferred temporarily to Basra Oil Company, with all outstanding financial dues between the parties settled. The settlement will take effect following approval by the Council of Ministers.
An additional framework agreement was signed between Basra Oil Company, Lukoil and Chevron allowing for the temporary transfer of the contract to Basra Oil Company, which will subsequently assign it to Chevron following completion of negotiations and agreement on the terms of a new contract. The framework provides Chevron with exclusive negotiating rights for one year under agreed criteria.
The signing ceremony was held under the patronage of Prime Minister Mohammed Shia Al-Sudani and attended by Deputy Prime Minister for Energy Affairs and Minister of Oil Hayan Abdul Ghani, US Special Envoy to Iraq Tom Barrack, and Chargé d'Affaires Joshua Harris.
(Source: Ministry of Oil)
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