Russia's Lukoil committed long term to Iraq

Russian oil company Lukoil said it's committed long term to the development of the lucrative West Qurna basin in southern Iraq.

Lukoil President Vagit Alekperov met in Baghdad with Iraqi Oil Minister Adel Abdul Mahdi to discuss the future of the second phase of developments at the southern oil field.

"Our company sticks to its plans to develop the business in Iraq on a long-term basis and to increase the production of oil," the Lukoil president said in a statement.

First oil was produced from West Qurna-2, located in southern Iraq, in March. Lukoil, Russia's largest private oil company, signed a contract revision last year to build two 75-mile long pipelines and associated infrastructure.

The system will link the oil field to an export terminal in Basra, situated along the coast of the Persian Gulf.

Military forces in parts of northern Iraq are working to suppress the rise of the group calling itself the Islamic State. Violence attributed to the group last year forced some energy companies to suspend operations, though much of southern Iraq has been spared from the conflict.

Alekperov said the Iraqi Oil Ministry has done its part in creating a favorable condition for foreign investments in the country.

Lukoil, which serves as the operator of the field, said West Qurna is producing more than 280,000 barrels of oil per day. The Iraqi government said full field production could eventually reach 400,000 bpd.

According to the Organization of Petroleum Exporting Countries, total Iraqi oil production for February was down slightly from the previous month to around 3.3 million bpd.