Iraq plans to bring the Eridu field online and to be producing 30,000 b/d from a pilot facility by early 2025 with FEED for the project underway. But Japan’s Inpex, 40% partner of Russian operator Lukoil (60%) is considering quitting due to concerns over Iraq’s bureaucratic operating environment (MEES, 4 November 2022).
MEES understands that Iraq’s government sees the project as too large and complex for state-owned Dhi Qar Oil Company (DQOC) to replace Inpex. Instead, DQOC is offering Inpex the option to sell its 40% stake to a “Japanese replacement.” However, other Japanese firms such as JX Nippon are unlikely to be willing to replace Inpex given the risky operational environment. (CONTINUED - 130 WORDS)