Saturday, March 17, 2007
ConocoPhillips planning to develop oil field with LUKoil
Oil, Commerce
(BI-ME) - ConocoPhillips said this week it is talking with Iraq's Oil Ministry about possible projects, while continuing to work on plans to develop an Iraqi oil field in partnership with Russia's OAO Lukoil. Chairman and Chief Executive James Mulva said the US-based company is continuing to look at development plans for Iraq's West Qurna field with Lukoil, in which ConocoPhillips holds close to a 20% stake. Lukoil's West Qurna deal initially dates to the Saddam Hussein era, and Mulva said he hopes it is re-affirmed.
West Qurna is one of Iraq's largest oil fields, loacated North of Rumaila field, West of Basra. West Qurna is believed to hold 11 to 15 billion barrels of recoverable reserve and have production potential of 0.8 to 1.0 million barrel per day, equivalent to upwards of US$47 million per day or US$17.3 billion per year.
"We've also done a lot of study and training, working directly with employees and members of the ministry within Iraq to see what ConocoPhillips can do ourselves," he said in an interview after making a morning presentation to analysts in New York.
The company would require that several issues be resolved before it operates in the country, Mulva said. At the top of the list is a new petroleum law defining what role international oil companies would have in developing Iraq's resources. "We are waiting for the new petroleum law to be passed," Mulva said. "There's good progress in that regard, and hopefully it will be completed in time." When asked what he meant by "in time," Mulva said weeks to several months.
Passage of the law, Mulva said, will give the number three US oil company a clearer picture of what opportunities it can pursue within Iraq. Another requirement for ConocoPhillips, Mulva said, is improved security in Iraq. "For security reasons, we haven't had our employees in Iraq," Mulva said. The company would need positive assessments from the government and security firms for that to change, he said.
West Qurna is one of Iraq's largest oil fields, loacated North of Rumaila field, West of Basra. West Qurna is believed to hold 11 to 15 billion barrels of recoverable reserve and have production potential of 0.8 to 1.0 million barrel per day, equivalent to upwards of US$47 million per day or US$17.3 billion per year.
"We've also done a lot of study and training, working directly with employees and members of the ministry within Iraq to see what ConocoPhillips can do ourselves," he said in an interview after making a morning presentation to analysts in New York.
The company would require that several issues be resolved before it operates in the country, Mulva said. At the top of the list is a new petroleum law defining what role international oil companies would have in developing Iraq's resources. "We are waiting for the new petroleum law to be passed," Mulva said. "There's good progress in that regard, and hopefully it will be completed in time." When asked what he meant by "in time," Mulva said weeks to several months.
Passage of the law, Mulva said, will give the number three US oil company a clearer picture of what opportunities it can pursue within Iraq. Another requirement for ConocoPhillips, Mulva said, is improved security in Iraq. "For security reasons, we haven't had our employees in Iraq," Mulva said. The company would need positive assessments from the government and security firms for that to change, he said.
Labels: ConocoPhillips, James Mulva, LUKoil, West Qurna
