Russia's Lukoil may lose deposit in Iraq

If this happens it certainly will not help Russia's relationship with Iraq but I imagine it is not that unexpected.

Lukoil may lose its oil deposit in Iraq 6.03.2007

A bill implying renegotiation of oil agreements completed during Saddam Hussein's presidency has been sent by the Iraqi government to the parliament of the country. The bill affects the interests of Russian company Lukoil exploiting Western Kurna – 2 oil field, reports Vremya Novestey. According to the newspaper, the bill implies 51 oil fields and 65 exploration blocks to be divided into four categories: 27 producing oil fields will make up the first category, the second category will be formed by oil fields with demonstrated reserves and the rest oil fields will form the third group. The fourth category will contain exploration blocks. The first two categories, including Western Kurna – 2, supposedly will pass under control of the new-created Iraqi national oil company. The bill may come into force in March.

Proven extracted reservoirs of the field are around 6 billion barrels of oil. The planned total installed cost in development of the field is around $4 billion. The LUKOIL share in the project has reached 68.5%, with the Iraq side having 25% and Zarubezhneft and Mashinimport with 3.25%, respectively.

sources:www.lenta.ru, www.lukoil-overseas.com
picture:bbc.co.uk