Statoil closes door on West Qurna 2

Round launch: Iraqi Oil Minister Abdul Kareem Luaibi

REUTERS/SCANPIX

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Steve Marshall

 30 May 2012 08:30 GMT

Statoil has finalised the transfer of its stake in Iraq’s West Qurna 2 project to operator Lukoil and has confirmed that it will not participate in the country’s latest licensing round that was launched on Wednesday.

The Norwegian state oil company decided to sell its 18.75% stake in the giant development scheme as it failed to meet profitability criteria and said in a statement on Wednesday that the Baghdad authorities have now approved the transaction, while keeping financial terms of the deal under wraps.

Lukoil now holds a 75% stake in the project, with state-owned North Oil Company on 25%, and the Russian oil giant is reported to be in talks with new potential partners – including Asian players - for a possible farm-in deal.

The operator is…

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