Norway-Russia Consortium Adjusts Shares

December 30, 2009

Norway-Russia consortium adjusts shares in Iraq's West Qurna-2  

Norway's oil company Statoil and Russia's largest independent crude producer LUKoil adjusted  their split ownership in a consortium to develop a large Iraqi oil field.

Statoil said on its website its share in the West Qurna-2 project had increased to 25% from 15%, with LUKoil's share in the consortium reduced to 75%. LUKoil and Statoil, which won a 20-year contract for West Qurna-2 on December 12 , will now control 56.25% and 18.75% in the project, respectively.

The Norwegian company added that an Iraqi state partner would also be included in the consortium with a 25% share. Statoil said that the realignment was aimed at creating "a more balanced consortium.

"The consortium will develop the 12.88 billion-barrel West Qurna-2 field in the Basra province. They aim to bring production to 1.8 million barrels per day. Statoil and LUKoil initialed the contract for the field with the Iraqi government earlier in the day.

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