Russia's Lukoil Says Was Asked to Reduce Iraq Output


MOSCOW, April 15 (Reuters) – Russia's Lukoil was asked to sharply reduce output in Iraq this year and earlier after the country's exports were disrupted by bad weather and quality issues.

"We've got the letter to curb our enthusiasm," Ravil Maganov, who is in charge of Lukoil's upstream division, told reporters.

Regarding Lukoil's production at the huge Iraqi West Qurna-2 oilfield, Maganov said: "We were restricted to 250,000 barrels per day (bpd) due to weather and level of sulphur, we are dealing with the problem."

He said Lukoil's current production at West Qurna-2 was 380,000 to 390,000 bpd.

Lukoil is building an oil pipeline with a capacity of 1.6 million bpd to Iraq's southern port of Faw.

The Iraqi government reimburses costs incurred by Lukoil, as well as other producers, with oil.

Oil companies have proposed cuts to development spending in Iraq after Baghdad told them that low oil prices and the fight against Islamic State had made payments difficult.

In a letter sent to the companies last month seen by Reuters, the firms were told such cuts should not reduce current oil production levels.

(Reporting by Olesya Astakhova; writing by Vladimir Soldatkin; editing by Jason Neely)



Copyright 2016 Thomson Reuters. Click for Restrictions.


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