Russia asks Iraq to reconsider cancelled LUKoil contract

The Russian government has officially asked Iraq to reconsider its decision to cancel a contract with LUKoil, which was signed in 1997, to develop one of Iraq's biggest oil fields, West Qurna-2, Interfax reported.

Russian foreign minister Igor Ivanov made a statement requesting that Iraqi leaders re-examine their decision and to engage in talks to find a mutually agreeable solution which isn't prejudiced against LUKoil.

The contract is valued at $3.7 billion and represents 38% of LUKoil's annual production, according to Interfax.

LUKoil is the majority partner in a consortium with 68.5%, the Iraqi oil and gas ministry holds 25% and Russian companies Zarubezhneft and Machinoimport have 3.25% each in a production-sharing agreement (PSA) in West Qurna-2 valid until 2020, it added.