Investment in Siberian drilling and production in Iraq is likely to see LUKOIL boost its oil output this year.
Following Iraq's request to reduce peak output levels, the company is hoping to extend its contract to operate the West Qurna-2 field by five years. This is in stark contrast with the company's decision not to pursue plans to help development of Iraq's Quarna-1 fields as reported last month.
The company has said that Iraq’s request to reduce peak output levels relates to a nationwide planned output reduction and infrastructure issues.
Meanwhile Lukoil is continuing to look for a partner for West Qurna-2 after the exit of Norway’s Statoil SA. The company is seeking new offshore projects in West Africa and Brazil and is drilling in Siberia, the Caspian, Uzbekistan, Iraq and West Africa to increase output after stabilizing domestic declines last year.