RUSSIAN LUKOIL NEGOTIATES COMEBACK

Info-Prod Research (Middle East), February, 2005

According to Al-Jazeera T.V. network (February 15, 2005), LUKOIL, one of the biggest oil companies in Russia, announced that it is currently negotiating the Iraqi government to get back its privileges to develop the Al-Kurna oil field in western Iraq. When LUKOIL was expelled from the West Kurna oil field, French company Totalfinaelf expected to get rights for development of Iraq-s fields to the sum of approximately $3.4 billion.

But no contracts were concluded with this company. The Chairman of LUKOIL, Vagit Alekperov, Expressed optimism concerning LUKOIL operation prospects in Iraq. LUKOIL hopes that the new Iraqi government right after the election process is completed will provide it with a license for the development of the West Kurna oil deposit, Alekperov added.