LUKOIL GRANTED THE RIGHT TO RECOVER COSTS AND RECEIVE REMUNERATION AT WEST QURNA-2

Wednesday, June 11, 2014

LUKOIL Overseas (the Operator of LUKOIL's overseas upstream projects) has informed Iraq’s Ministry of Oil that it has fulfilled its contractual obligations for first commercial production at West Qurna-2.

LUKOIL, the Operator of the West Qurna-2 project, successfully maintained an average daily production of at least 120 thousand barrels for 90 days, entitling it to begin recovering costs and receive remuneration.

Daily oil production at West Qurna-2 is currently above 200 thousand barrels.

“The West-Qurna-2 project is developing at a fast pace, and production is going up. As of today, the project has reached another milestone by paving the way for LUKOIL to receive contractual remunerations. Timely cost recovery for the Early Oil phase will enable the Operator to proceed to active implementation of the subsequent phases of the field development,” said Andrey Kuzyaev, Vice President of LUKOIL and President of LUKOIL Overseas.