According to the sources from Lukoil, Russia’s second largest oil producer, the oil company is expected to launch its West Qurna-2 field in Iraq by the end of March next year. The measure will help the company to more double up its oil output abroad. Additionally, it is expected to expand its production front where it is facing a log of a challenge in the domestic market in Russia.
The ambitious project in Iraq, which is OPEC’s second-biggest oil producer, according to observers will help Lukoil get a boost. Also, the company expects a robust return to growth next year from the increased production that it will get from the Iraq oilfield. Nonetheless, security is still a major concern as protests and bombings still take place regularly.
However, Andrey Gaidamaka, Lukoil’s vice-president of the company says that the company has once in a while different, clearly minor, disruptions to construction work and well protected by the oil police. He also added that the company is trying to make sure, to the maximum (that) it uses negotiating tactics. Lukoil aims to reach production of 120,000 barrels per day (bpd) in the first quarter of 2014.
Lukoil also plans to bring an output of 1.2 million bpd at its peak; however, the company admits that plans have yet to be finalized with the Iraq government which will have the final say on the project. Additionally, Lukoil is also committed to increasing dividends by at least 15 percent a year in 2013 and 2014 even as its investments increase.
The WTI and Brent Widened for a Sixth Day
The reports coming tell that crude market as the spread between West Texas Intermediate and Brent widened for a sixth day to an eight-month high. This all is happening amidst the news that industry data shows crude stockpiles rose for a ninth week in the U.S. However, futures have fallen slightly as they received a decline of 0.4 percent in New York.
On the other hand, the American Petroleum Institute in its statement said that crude inventories went up by 6.92 million barrels last week. Similarly, the Energy Information Administration is expected to that it projects to show supplies climbed by 750,000 barrels. After the successful deal with Iran, the oil prices were expected to decline further and keeping the latest production level in mind, even OPEC is not in mood to expand production.
To contact the reporter of this story: Jonathan Millet at email@example.com