The schedule for further development of the $4bn West Qurna-2 field development project is being discussed with Iraqi government officials, according to a spokesperson for Lukoil, the Russian company operating the field.

“The time frames of further development of the West Qurna-2 project are being discussed with the Iraqi side,” says the spokesperson.

“Lukoil has submitted its proposals on the project budget for 2016 to the Iraqi government… the company is expecting that they will be reviewed in the nearest time.”

The comments from Lukoil come after Iraq’s Oil Ministry saw its funding slashed by the central government.

On 6 September, a letter from the Oil Ministry warned foreign companies developing the country’s southern oil fields that Baghdad had “sharply reduced the funds available to the ministry” due to the drop in government revenues from crude sales.

So far the reduction in funding has not affected progress on the West Qurna project, according to Lukoil.

“The operations at the West Qurna-2 field are progressing as per the established plan,” the spokesperson said. “Current production has reached 450,000 barrels of oil per day (b/d) and is currently being maintained at this level.”

West Qurna-2 is being developed by Lukoil in partnership with the state-owned South Oil Company.

It is one of the largest oil fields in the world, with estimated recoverable oil reserves total approximately 13 billion barrels.

These will be produced from two major formations: Mishrif and Yamama. 

The West Qurna-2 field development project is being conducted in three phases:

• Phase 1: The first phase of the project, named Early Oil, was commissioned in 2014 and aimed to boost capacity to a planned 400,000 b/d.
• Phase 2: The second phase, also known as the Mishrif full field development, will increase production by 150,000 b/d to 550,000 b/d. Lukoil has hired Australia’s WorleyParsons as the project management consultant (PMC) for the expansion.
• Phase 3: The third phase will develop the deeper Yamama formation adding another 650,000 b/d