In the Middle Ages, merchants and explorers travelled between the two countries using the Volga trade route and Caspian Sea, and then overland. U.S. President Donald Trump might like to claim that the United States still has a hand in the region’s oil sector.
© 2020 World Oil, © 2020 Gulf Publishing Company LLC. Lukoil, which operates the large West Qurna-2 oilfield in Iraq, looks beyond this year and plans to increase its production in what is a key region for the Russian company.

(Bloomberg) --Lukoil PJSC is seeking to develop new oilfield projects in Iraq even as slumping crude prices and OPEC+ supply cuts have compelled the company to slash production in the country. So now Russia basically controls this export.”. This article was originally published on Oilprice.com. In 2019, West Qurna-2 was producing 400,000 bpd, and Lukoil began drilling new production wells as part of the second development phase at the oilfield. The oil is secure.” In regards to Iraq, the president has also lamented that the United States didn’t take control over the country’s reserves after the Iraq War. After the fall of the Saddam Hussein regime in 2003 and following the occupation of Iraq, Russian companies were largely absent from the playing field.

According to one Iraqi politician, talking to us on a condition of anonymity in November, “by this deal, Russia got a lot of political power in Iraq. Despite ongoing protests in Baghdad, which have seen the departure of many foreign diplomats for security concerns, Russia has doubled down. So we do not see it as an issue.”. © Autonomous Nonprofit Organization “TV-Novosti”, 2005–2020. Iraq’s current output is limited to about 3.6 million barrels a day, under the OPEC+ deal. Subscribe to RT newsletter to get stories the mainstream media won’t tell you, FILE PHOTO: The company logo of Lukoil is seen in West Qurna oilfield, Iraq © Reuters / Essam Al-Sudani, OPEC+ key breakaway asks BP to cut production at its biggest oilfield to finally comply with oil deal – report, Libya’s oil industry lifts force majeure on its biggest oilfield, We won’t deal with ships operating in Venezuela, Brazil’s Petrobras says amid US sanctions on oil trade with Caracas, Russia now makes more money from gold than natural gas exports, Russia proposes $20 billion in new investment projects with China, Australians can visit Antarctica during pandemic with no passport or luggage required, Sanctioned Venezuelan oil exports rise from historic lows thanks to increase in India sales – report, Exxon eyes global job cuts to keep afloat after oil price collapse, Central Bank of Russia does not rule out another pandemic wave & $25 oil price, Major banks, food & cosmetics brands linked to massive abuses in palm oil industry – report, Iran significantly boosts oil exports despite sanctions, Full stream ahead! Twitter: @MohammedHkalari. “For a long time now,” said one in November, “Iraq is working with Russian companies that are sanctioned by the U.S. Treasury and till now those deals have not triggered any strong reactions by the U.S. administration. All rights reserved. Oil revenue is a significant government income for several oil producing countries. As one KRG leader told us this month, “long time before the recent political, security, and financial crisis, in early 2012, Russians entered Iraqi Kurdistan as a strong international investor. We have the oil. Oil is the main currency in those two countries, so whoever controls it also has a major say in the region’s geopolitics. By Vera Mironova and Mohammed Hussein, for Foreign Policy. Since 2014, international oil companies have renounced at least 19 oil blocks in Kurdistan, according to an analysis by the Iraq Oil Report. 0. In fact, the majority of the participants were businesspeople, including representatives of such Russian oil and gas companies as Gazprom Neft, Rosneft, Soyuzneftegaz, and Lukoil. This website uses cookies. “Russians wanted to make sure everything is going smoothly regarding Russian energy companies’ projects in Iraq.” Another source with links to the Kurdistan Regional Government (KRG), which is headquartered in Erbil, concurred. The common belief in Kurdistan was that having a trade deal with them will also bring other, political and security, benefits.”, Even sanctions don’t seem to bother the Russians or Iraqis. Many demonstrators see Tehran’s hand in widespread violence and support for the embattled prime minister. Russia was not always so enmeshed in Iraq’s oil and gas sector. Today, this field is only producing at a rate of around 400,000 barrels per day, but it already represents 9 percent of total Iraqi production of crude oil and 12 percent of Iraq’s oil exports. Low oil price put pressure on state financials. Russia’s second-biggest oil producer pumped 400,000 barrels a day last year at its West Qurna 2 project in southern Iraq, and it had planned to boost output there in 2020. “The current situation forces us and our partners to revise our plans to see how they correspond to the needs of the time,” Zubarev said. China’s growing influence in Latin America and climate change will both continue to shape the future of the bilateral relationship. Exxon, BP, and Lukoil are among the largest foreign producers in Iraq, and all were asked to reduce output.

Russia’s second-largest producer, Lukoil, is eager to increase its oil production in Iraq once the production cuts of the OPEC+ group end, Egor Zubarev, Managing Director of Lukoil Mid-East, told Bloomberg. All that changed with increased sectarian conflict in 2009. For example, in 2009, the Russian company Lukoil won one of the first oil contracts in postwar Iraq, for the West Qurna-2 development project in Basra. In spring 2018, Rosneft also announced the signing of an agreement with the KRG’s Ministry of Natural Resources to develop its oil and gas infrastructure, including a new gas pipeline that is expected to have export capacity of up to 30 billion cubic meters of gas per year. Just in September, meanwhile, the Russian company Stroytransgaz won a 34-year contract for oil and gas exploration in Iraq’s Anbar province, a deal that Lavrov especially thanked Iraq for during his visit, according to a source in the Iraqi prime minister’s office. While it expects for now to keep output levels unchanged, Lukoil will “soon” submit proposals to Iraqi authorities to develop a separate area in the south known as Block 10, Zubarev said in an email. There were no official agreements signed; politics, Syria, and terrorism seemed like an afterthought; and diplomats were in the minority during the week’s events. Some even want military rule. Russian companies, hungrier for risk, took their place. Vera Mironova is a visiting fellow at Harvard University. Smoke billows from a fire that broke out at the North Oil Company installations in the disputed oil-rich province of Kirkuk, north of Baghdad, on Aug. 29. Russian influence over the oil in Iraq and Syria is not only a long-term economic blow to the United States, but a political one, too. And due to the long-term nature of oil and gas contracts, Russia’s market share will only increase over time. Lukoil plans to file proposals to Iraq’s authorities “soon” to develop a separate area in southern Iraq known as Block 10, Zubarev said. The project is slated to last 25 years with a target of achieving production of 800,000 barrels per day by the end of 2024. Twitter: @vera_mironov, Mohammed Hussein is the policy director at the Iraqi Center for Policy Analysis and Research. The Future of Iraq’s Oil Is Russian. Iraq, OPEC’s second-largest producer, ordered international companies working at its fields to pump less oil after the Organization of Petroleum Exporting Countries and allies including Russia agreed in April to take nearly a 10th of the world’s supply off the market. S. Jaishankar’s “The India Way” is a rare book by a sitting foreign minister. Also in attendance were representatives of Technopromexport, a Russian company that builds energy facilities, and from Russia’s Federal Service of Military-Technical Cooperation. Around that time, many Western oil companies (such as ExxonMobil and Chevron) partially or totally left the region due to the security concerns. Lukoil has a 75% stake in West Qurna 2 and is working on projects to explore other parts of the field as well as the separate Block 10 area. With Rosneft having effectively taken control of Kurdistan’s oil and gas sector in northern Iraq through the deal done in November 2017, Russia had been looking to leverage this presence into a similarly powerful position in the south of the country. It has long targeted production of 5 million barrels daily, with a capacity to export about the same amount. The goal of the Russian company was to boost production at West Qurna-2 to 480,000 bpd this year. After 15 years of corruption, Iraqi protesters have finally reached a breaking point. Any opinions expressed here are those of the author and do not necessarily reflect the views of Iraq Business News. That amounts to approximately 6 percent of Europe’s total gas demand. Iraq’s financial constraints present a challenge. Russia was not always so enmeshed in Iraq’s oil and gas sector.

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Russian influence over the oil in Iraq and Syria is not only a long-term economic blow to the United States, but a political one, too. We will NEVER let a reconstituted ISIS have those fields!” And in a meeting with Turkish President Recep Tayyip Erdogan, he noted, “We’re keeping the oil.
Due to the shortage of funds, some projects have been delayed, Bloomberg quoted Iraq’s Oil Minister Ihsan Abdul Jabbar as saying at an online conference on Tuesday. 129. And soon, even the dollar might not have a place in the trade: Iraq and Russia have been discussing denominating payments in either rubles or dinars rather than the dollar to avoid any interaction with the U.S. system. At the time, there was no need for Russians since the Americans had a strong presence and support in the region.