West Qurna Field

West Qurna (Arabic: غرب قرنة) is one of Iraq's largest oil fields, located north of Rumaila field, west of Basra. West Qurna is believed to hold of recoverable reserves. Until 2009, the field was closed to Western firms.

Phases

West Qurna Phase I

In November 2009, an ExxonMobil - Shell joint venture won a $50 billion contract to develop the West Qurna Phase I. As per Iraqi Oil Ministry estimates, the project will require a $25 billion investment and another $25 billion in operating fees creating approximately 100,000 jobs in the underdeveloped southern region. ExxonMobil is set to increase the current production of within seven years. The Iraqi government, in turn, will pay $1.90 per barrel produced by ExxonMobil-Shell alliance.

West Qurna Phase II

In December 2009, Russia's Lukoil and Norway's Statoil were awarded the rights to develop the West Qurna Phase II oil field. The Lukoil-Statoil alliance will receive $1.15 per barrel that they produce. In addition, they will work to raise output from West Qurna 2 to by 2012 and over a period of 13 years. In March 2012, Statoil sold its 18.75% stake in the field to Lukoil, giving the Russian firm a 75% stake, and leaving the Iraqi state oil company with 25%.

Water-injection project

A new joint multibillion-dollar water-injection project will be awarded to operator ExxonMobil. The project includes construction of a plant which will help 6 major oil-field development projects by producing of water per day. The alliance will include Shell, Eni, Lukoil, CNPC and Petronas.

External links

• U.S. Energy Information Administration Country Analysis Brief
• Exxon-led group clinches Iraq's W.Qurna contract
• Exxon, Shell Win Iraq's West Qurna Contract