Sergey Kondratiev, Principal Director on Economic Studies at the Institute for Energy and Finance, commented to the Vedomosti newspaper about Lukoil's work in Iraq.
Lukoil and the Iraqi oil company Basra (responsible for oil production in the south of the country) signed an additional agreement to the contract for the development and production of oil at the West Qurna–2 field, improving the participation conditions for the Russian company. Lukoil announced this on November 2.
According to Sergey Kondratiev, one of the key issues for Lukoil was the amount of remuneration, because in conditions of rising costs, the base rate of $1.15/bbl has lost its attractiveness.
But for Lukoil and other Russian companies, it is important to have a presence on international markets, Kondratiev explains: this allows you to increase the resource base, production and get additional income. For example, Lukoil has projects not only in the Middle East, but also in Africa, Mexico and the CIS countries.
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