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OIL AND GAS
Lukoil ships first batch of oil from Iraq's West Qurna field
by Daniel J. Graeber
Moscow (UPI) Aug 19, 2014


Oil Search Ltd. puts Iraq work on hold amid violence
Melbourne (UPI) Aug 19, 2013 - Australian energy company Oil Search Ltd. said Tuesday it was suspending operations in the Kurdish north of Iraq as a security precaution.

U.S. President Barack Obama announced Sunday he authorized the use of force in Iraq to help the Iraqi military retake control over a key dam in the northern city of Mosul. Parts of northern Iraq have fallen to the Islamic State, a Sunni-led militant group.

Oil Search said in a report on its earnings for the second half of the year its ability to operation at its Taza area in the Kurdish portion of Iraq was complicated by regional tensions.

"Consequently, in consultation with Kurdistan's Ministry for Natural Resources, we have decided to temporarily suspend the well," the company said.

Oil Search said work in other parts of the region is ongoing and installations there are secure. The company said it was monitoring the security situation and plans to resume suspended operations as soon as it's safe to do so.

"Further appraisal drilling on this potentially very large oil field is planned," the company said.

Oil Search operates primarily in the natural gas sector of Papua New Guinea, but has activities throughout the Middle East.

Russian oil company Lukoil said Tuesday a tanker loaded with crude oil taken from the West Qurna project in Iraq has left the southern port city of Basra.

Lukoil said Sea Triumph, a tanker chartered by its international marketing subsidiary, left port with 1 million barrels of oil.

Lukoil said it's the first batch of oil from its operations in the West Qurna-2 project in Iraq.

"The vessel is bound for Augusta, Sicily," the company said in a statement. "Upon unloading, the oil will be transported for refining to Lukoil's refinery in Priolo [Italy]."

First oil was produced from West Qurna-2, located in southern Iraq, in March. Lukoil, Russia's largest private oil company, signed a contract revision in June to build two 75-mile pipelines and associated infrastructure.

The system links the oil field to an export terminal in Basra, situated along the coast of the Persian Gulf.

The shipment comes as Iraq is struggling to control an uptick in violence, though most of that is centered in the northwest and Kurdish parts of the country.

Lukoil said the West Qurna field in the south of the country is producing more than 280,000 barrels of oil per day.

"The project is being implemented on schedule as Lukoil fully meets its production targets and contractual obligations," it said.

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