Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  Equities  >  MOSCOW INTERBANK CURRENCY EXCHANGE  >  NK Lukoil PAO    LKOH   RU0009024277

News SummaryMost relevantAll newsSector news 

Lukoil To Produce 150,000 b/d In 2013 From Iraq West Qurna-2

share with twitter share with LinkedIn share with facebook
share via e-mail
04/25/2012 | 01:23pm CEST

(Adds details, quotes, background throughout.)

By Hassan Hafidh


OAO Lukoil Holdings (LKOH.RS), Russia's largest non-state oil producer, aims to produce 150,000 barrels of oil a day at Iraq's West Qurna Phase 2 oilfield in 2013, an output level that triggers cost recovery and service fee payments, a Lukoil executive said Wednesday.

The 13-billion-barrel West Qurna-2 is one of the major fields alongside Rumaila, West Quran-1, Zubair and Majnoon that the member of the Organization of Petroleum Exporting Countries is developing with foreign companies in the south as it recovers from years of war and sanctions.

Lukoil will invest some $30 billion to upgrade the field, said Sergey Nikiforov, senior vice president for Development and Production at Lukoil Overseas Holding Ltd.

Lukoil will produce some 150,000 barrels a day from West Qurna-2 at the end of 2013, Nikiforov added.

"We are planning to increase output from the field to 500,000 b/d in the second quarter of 2014, he said on the sidelines of the start of drilling operations at the field in Southern Iraq.

Iraqi oil minister Abdul Kareem Luaiby, Iraq's state-run South Oil Co. and Lukoil officials Wednesday also marked the beginning of work at the field's central processing facility with a production capacity of 500,000 barrels a day. The project will be built by South Korea's Samsung Engineering Co. (028050.SE).

The West Qurna-2 oil field development project is one of 10 that Iraq awarded in two licensing rounds in 2009 and 2010. If all the companies deliver to the letter of their contracts, nearly 9 million barrels a day of capacity will be added to Iraq's existing 2.9 million barrels a day by 2017, though half that amount looks more achievable given infrastructure hurdles and logistical bottlenecks.

Operator Lukoil and Norway's Statoil ASA (STO) were awarded a 20-year service contract in Iraq's second licensing round held in December 2009. The pair promised to get the southern field pumping at a rate of 1.8 million barrels a day for payment of $1.15 a barrel.

For the undeveloped second-round oil fields, companies will start to recover investment costs and be paid for their services after initial commercial production is hit. In the case of West Qurna-2, that rate is 120,000 barrels a day.

Lukoil and its partners have awarded a series of contracts to international oil services companies, the most important of which was the $1 billion deal to Samsung Engineering Co. earlier this year.

Samsung would build many projects in the field including a central processing facility, or CPF, to produce 500,000 barrels a day from West Qurna-2. Work on the facility is expected to take 29 months to complete from start of work.

-By Hassan Hafidh, Dow Jones Newswires; +962 799 831 831; Hassan.Hafidh@DowJones.com

share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on NK LUKOIL PAO
07/21 NK LUKOIL PAO : Lukoil names best employees and companies of the group
07/19 BUMI ARMADA BHD : Lukoil puts ice class vessels into service in the caspian sea
07/18 NK LUKOIL PAO : Press service statement
07/11 NK LUKOIL PAO : ex-dividend day for final dividend
06/28 NK LUKOIL PAO : Winners of the vi lukoil's spartakiad awarded in perm
06/28 NK LUKOIL PAO : Lukoil and perm region develop cooperation
06/28 NK LUKOIL PAO : Lukoil - monument to pioneering oilmen is unveiled in perm regio..
06/23 NK LUKOIL PAO : Lukoil holds annual general shareholders meeting
06/22 NK LUKOIL PAO : Lukoil employees in perm region receive state and corporate awar..
More news
Sector news : Integrated Oil & Gas
07/22DJPETROLEO BRASILEIRO PETROBRAS : Petrobras Seeks to Sell Controlling Stake in Ret..
07/21DJSantos 2Q Revenue Falls, Maintains Annual Output Target
07/21DJOil Search Abandons Bid for InterOil, Clears Path for Exxon
07/21DJOil Search Abandons Bid for InterOil, Clears Path for Exxon -- Update
07/21DJOil Search Abandons Bid for InterOil, Clears Path for Exxon
More sector news : Integrated Oil & Gas
News from SeekingAlpha
07/05 Chevron-led group commits to $36.8B expansion project in Kazakhstan
07/01 Chevron nearing decision on $40B Kazakhstan expansion project
07/01 WisdomTree Emerging Markets Dividend ETF (DVEM) June Summary
06/06 Lukoil's Q1 profit drops 59% but beats expectations
06/02 WisdomTree Emerging Markets Dividend ETF (DVEM) May Summary
Financials ($)
Sales 2016 81 091 M
EBIT 2016 6 478 M
Net income 2016 4 112 M
Debt 2016 8 215 M
Yield 2016 6,36%
P/E ratio 2016 9,39
P/E ratio 2017 7,47
EV / Sales 2016 0,56x
EV / Sales 2017 0,48x
Capitalization 37 527 M
More Financials
Income Statement Evolution
More Financials
Mean consensus OUTPERFORM
Number of Analysts 13
Average target price 47,9 $
Spread / Average Target 8,6%
Consensus details
EPS Revisions
More Estimates Revisions
Vagit Yusufovich Alekperov Chairman-Management Board, President & Director
Valery Isaakovich Grayfer Chairman
Alexander Kuzmich Matytsyn Senior Vice President-Finance
Ravil Ulfatovich Maganov Director, First EVP-Exploration & Production
Sergei Anatolyevich Mikhailov Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
TOTAL4.41%118 881
ENI SPA3.12%56 757
ROSNEFT' NK OAO--.--%54 752
STATOIL ASA17.14%54 694
More Results