Russian oil producer Lukoil, together with its partner INPEX South Iraq, has received regulatory approval for the development Eridu oilfield in Iraq.
Lukoil, INPEX South Iraq secure regulatory approval for Eridu. (Credit: LUKOIL)
Iraq’s state-owned Thi-Qar Oil Company (TOC) has approved the company’s declaration of commerciality of reserves and outline development proposal, submitted in November 2021.
Following TOC approval, Lukoil and INPEX South Iraq plan to implement and develop the Eridu oilfield, with a goal of producing 250,000 barrels per day.
Discovered in 2017, Eridu is a conventional oil development located within Block 10, Iraq.
Block 10 is located in the southern part of Iraq, 120km west of the city of Basra and 150km from Lukoil’s majority-owned West Qurna 2 field and covers an area of about 5,800km².
Eridu oilfield was assigned to Lukoil and an affiliate of Japan’s Inpex, as part of the country's fourth licensing round in 2012.
Lukoil owns 60% of the Block, and is also the operator, while Inpex holds the remaining 40% stake.
The Russian oil producer has drilled nine wells, three exploration and six appraisal wells, and has completed 2D and 3D seismic surveys, since the initial discovery.
Eridu is one of the largest petroleum discoveries in Iraq for the last 20 years and is estimated to hold oil reserves of 12.9 billion barrels.
Earlier this year, Lukoil, through its subsidiary Litasco, reached an agreement for the sale of ISAB, which owns a large petrochemical complex in Italy, to G.O.I. ENERGY.
The transaction is planned to be closed by the end of this month, subject to certain conditions including receipt of necessary approvals, particularly from the Italian government.