LUKOIL has pulled out of Iraq exploration plans, while drilling gets the green light in Israel and Egyption blocks go up for sale.
Lukoil has decided not to pursue plans to help development of Iraq's Quarna-1 fields. The area became available when ExxonMobil informed the Iraqi government that it wanted to pull out. But Russia's second-largest crude producer sees the $50bn project as high-risk, particularly as it already owns 75% of the West Qurna-2 project without a partner after Statoil decided to leave the project earlier this year.
What is high risk for the Russian company may be attractive to Chinese majors, who see Iraqi oil as being vital to their needs. Beijing seems prepared to accept tougher terms and lower profits than Western and Russian oil majors which are mainly answerable to shareholders.
Meanwhile, go-ahead will be given for the drilling of additional wells in the Meged field, Israel's only oil-producing patch. This follows the country's Supreme Court dismissal of a lawsuit brought by a leading environmental group, which is concerned about planning and protection processes being circumvented.
Israel imports nearly all its crude consumption of about 11 million mt/year, mostly from Russia, Azerbaijan and other former Soviet states.
Elsewhere, Ganoub El Wadi Petroleum Holding Co., an Egyptian state-owned energy company, is offering 20 concessions for oil and gas exploration to international investors. Bidders have been given a five month deadline ending on May 30. The blocks are located in the Gulf of Suez, the Eastern and Western Deserts and the Red Sea.