Shafaq News- Basra
Iraq has made progress in negotiations with US energycompany Chevron to develop the West Qurna 2 oil field, with no major obstaclesremaining to a final agreement, the Director General of Basra Oil Company statedon Wednesday.
Bassem Abdul Karim told Shafaq News that the state-ownedcompany will manage the West Qurna 2 field on an interim basis for six monthsfollowing the withdrawal of Russia's Lukoil, while negotiations with Chevroncontinue.
The two sides have signed three agreements coveringconfidentiality, technical matters, and the transfer of field data, with afourth agreement expected to be signed next week, Abdul Karim said, adding thatprocedures related to a $200 million advance payment are still underway. TheMinistry of Oil is also preparing a financial guarantee to address anypotential liabilities, allowing negotiations to proceed toward a final contractthat would give Chevron responsibility for developing and operating the field.
Abdul Karim said France's TotalEnergies is continuing workon the Artawi oil field development project, aiming to increase production to210,000 barrels per day within three years after raising output to 120,000barrels per day in the coming months. The company is also advancing associatedgas capture and solar power projects in Basra.
The electricity project has entered the production phasewith an initial generating capacity of 250 megawatts, which is planned toincrease gradually to 1,000 megawatts to support Iraq's national power grid, AbdulKarim clarified.
The update follows Prime Minister Ali Al-Zaidi’s visit toWashington, where he announced discussions with Chevron on investmentopportunities in Iraq's oil sector as part of the government's efforts toattract major international energy companies and expand investment indeveloping the country's oil fields.
Lukoil's withdrawal from West Qurna 2 came after USsanctions on Russia complicated the company's ability to manage itsinternational operations. West Qurna 2 is one of the world's largest oilfields, accounting for about 0.5% of global oil supply and roughly 10% ofIraq's crude oil production.
