Statoil Operations in Iraq

= History =

2009 marked the beginning of Statoil's involvement in Iraq.

= Activities and Contracts =

West Qurna 2
After unsuccessfully bidding for the first phase of the West Qurna field, Statoil and partner Lukoil won rights in 2009 to develop the second phase of Iraq’s “super giant” West Qurna crude deposit, the largest offered to foreign investors in 2009's second round of bidding. The consortium offered to develop the field in exchange for $1.15 for each barrel of oil it extracted, outbidding offers from companies including BP and Total. Under the terms of the contract, Statoil was to hold an 18.75% share of the consortium, with Lukoil holding 56.25% and the state-owned North Oil Company holding the remaining 25%. Peter Mellbye, Statoil's Head of International Exploration and Production said in 2010 that the company would invest $1.4 billion over the following 4-5 years.

However, after receiving the approval of the Iraqi Oil Ministry in March 2012, Statoil began selling off its stake in the field, leaving Russian Lukoil as the sole foreign partner in the project. Reuters reported that the company was looking to turn its attention to less risky assets elsewhere, such as Norway and the US.

=References=