LUKOIL, the second largest Russian oil producer announced that it expects to earn a minimum of $2 billion from Iraq’s crude oil exports in 2014. The company estimates to ship a minimum of 28 million barrels of oil and thus expects to regain more than half of the $4 billion original investment in the oil field during this year.
The company plans to invest approximately $40 billion in the project during its 25-yer life span; the majority of this amount will come from revenues generated from oil sales. Moreover, output is expected to increase over the next decade from today’s levels of 280,000 barrels a day now to 1.2 million barrels of oil a day.
LUKOIL president Andrey Kuzayev added that the political situation in Iraq has an important impact on his company but so far there is no influence on production in the south of country and that his company is satisfied with the level of security in Iraq.