Russia's largest oil company, Lukoil, may receive a contract to develop a large Iraqi oil field, which it won the rights to under Saddam Hussein.
The Independent reports negotiations between Lukoil executives and Iraqi officials are ongoing. Lukoil signed a $4 billion deal to develop the 16 billion barrel West Qurna-2 field, though that and other deals signed by Saddam were stalled when his regime was overthrown.
Iraq has the an estimated 115 billion barrels of reserves, the third largest in the world. But it does not have a law governing oil prospects in the country, keeping out investment and circumventing new contracts on oil.
Lukoil, like other previous contract winners, such as Chinese state oil companies, are eager to get their previous deals recognized.
Bob Fryklund, vice president of industry relations for energy analyst IHS, told UPI Monday those deals are likely to be recognized, as long as the companies agree to terms more favorable for Iraq.
Although an oil law isn't approved yet, Article 31 of a draft version says: Any contract made under existing law concerning Exploration and Production of Petroleum in the territory of Iraq shall remain valid.Vagit Alekperov, president of Lukoil, will be in Iraq soon to negotiate with the Iraq Oil Ministry. Work could begin within three months of the contract being rewarded, Alekperov said, adding: but everything depends on the security situation, another factor keeping investors out of Iraq.
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