Lukoil counts on Kremlin in Iraq
Russian oil producer Lukoil signed a partnership deal with the Russia's Foreign Ministry today, saying it counted on its support as it prepares for talks to revive a giant oil deal in Iraq.
Lukoil and the ministry said in a statement that the deal, the first of its kind in Russia, aims to support Lukoil's projects abroad, defend the company's interests by diplomatic means and facilitate its meetings abroad.
Lukoil will in turn consult the ministry on energy issues.
"Our company is entering new regions, including politically unstable regions. We will especially need support of the ministry in Iraq," Interfax news agency quoted Lukoil chief executive Vagit Alekperov as saying at a signing ceremony which was closed to reporters from foreign media organisations.
Alekperov said last month his company was optimistic about the prospects of reviving a Saddam-era deal to develop Iraq's giant West Qurna deposit after the Iraqi Cabinet approved a draft oil law.
The $4 billion deal to develop West Qurna is expected to be complicated by the fact that it was scrapped by the government of Saddam Hussein just before he was toppled in 2003.
Iraq's parliament still has to pass a hydrocarbons law, aimed at setting out the framework for foreign companies investing in Iraq after decades of sanctions under Saddam and years of violence since the US-led invasion.
Alekperov said Lukoil will send a delegation to Iraq for more talks in March or April.
Alekperov is a major shareholder in Lukoil. US supermajor ConocoPhillips holds a 20% stake in Lukoil.