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LUKOIL in the Republic of Iraq

As for the Middle East, Iraq has become the focal point of LUKOIL’s strategic policy, intended to ramp up the company’s production outside Russia. Iraq is one of the world’s most promising regions for building up production due to its enormous reserves of conventional hydrocarbons. For LUKOIL, with its vast history of onshore production and development of conventional oil, Iraq is very appealing in terms of business development and application of the lessons learned. In 2014, LUKOIL produced the first oil at West Qurna-2, a field in southern Iraq. This is one of the world’s largest fields. LUKOIL is also a party to an exploration project, covering Block 10 located in proximity to West Qurna-2.

Company Presence

LUKOIL MID-EAST LIMITED     Production of oil, gas and condensate
LUKOIL Overseas Iraq Exploration B.V.      Geological exploration
LUKOIL International Services B.V.    Service


The West Qurna-2 field is located in southern Iraq, 65 kilometers north-west of Basra, a major seaport. The service contract for West Qurna-2 development and production was signed in January and came into effect in February 2010. West Qurna-2 is one of the largest fields globally. PJSC LUKOIL holds a 75% interest in the project.

 In March 2014, commercial oil production commenced at the field. For this purpose the field's main production facilities were constructed in a record-short time of 27 months. Currently, the commissioned facility enables the production of 450,000 bbl per day. West Qurna-2 is a major investment project carried out in Iraq by a private company, in which maximum production growth was achieved from a single field.

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    In May 2012, following the completion of the forth licensing round, LUKOIL in conjunction with INPEX CORPORATION (Japan) was awarded the right to conduct exploration and subsequent development of Block 10. The 5.5 ths.

    sq. km block is located in Di-Kar and Mutanna provinces, 120 km west of Basra, in the proximity of such major Iraqi oil fields as Rumaila and West Qurna. Between 2013 and 2014, the block was cleared of mines and between April 2014-February 2015, 2 ths. km of the block were covered by 2D seismic surveys. The seismic surveys helped determine the promising targets for exploration drilling activities.

LUKOIL has invested a great deal of effort to provide better living standards for local residents in the areas of its operations in Iraq. In the past few years, LUKOIL created thousands of jobs, and hundreds of personnel received training at the training center for the Iraqis employed at West Qurna-2. The social program of LUKOIL, that has been around for some years, is already part of the West Qurna-2 project seeking to improve the physical infrastructure of educational, healthcare and sports institutions. The Company has been very active in providing support to local communities, launching multiple projects to re-equip local schools, purchase computer equipment, arrange for regular supplies of drinking water to schools, build sports facilities and purchase state-of-the art medical equipment for local hospitals.

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