A consortium, led by Eni SpA (E) was awarded the license to develop the giant Zubair oil field in Iraq. Eni, which is the operator, will have a participation of 40% in the consortium, subject to adjustments. The other members include Occidental Petroleum Corp. (OXY) and Korea Gas Corp. It also includes the participation of Southern Oil, the Iraqi state company, who has a 25% interest in the field.   The Zubair field currently produces 195,000 barrels of oil per day (Bbls/d). As a result of the expansion program, production at the field is expected to reach 1.125 million Bbls/d over the next seven years.   Eni’s job at the field consists of drilling more than 200 wells, construction of treatment facilities and the required collection network, as well as the overhaul of the existing plants. The service contract expires in 20 years with a provision to ...

Lukoil is apparently contemplating a joint refinery investment with ConocoPhillips on the East Coast of the US.  ConocoPhillips says it has no plans to build a new US refinery.  Russian gas exports to countries other than ex-Soviet bloc fell 50% year on year in January to May.  As the Ukraine-Russia gas problem rumbles on, the EU has been attempting to put together a loan for Kiev as it hits another payment deadline for its gas debt to Russia.  Ukraine's state firm Naftogaz could secure up to $4 billion in financing with the help of Russian investment bank Troika.  The world's biggest buyer of liquefied natural gas, Korea Gas Corp., and Mitsubishi Corp. have agreed to jointly consider the possibility of developing gas reserves in Venezuela and purchasing stakes in liquefied natural gas plants in Australia and ...

Oil has fallen below $50 a barrel, as an Energy Department report is expected to show that US crude stockpiles have increased by 2 million barrels.  Turkmen President, Gurbanguly Berdymukhammedov, has ordered an investigation into the recent pipeline explosion and may seek damages.  Lukoil is, apparently, 'comfortable' with its $7 billion debt and will look to increasing refining capacity.  OGK-1 may reduce investment in three new plants by up to 15%.  Iran has given Royal Dutch Shell and Repsol a May 20 deadline to make clear their involvement in a large gas project in the Gulf.  Korea Gas Corp. intends to import around 650,000 tons of LNG from Russia this year, as a twenty-year contract gets underway.  Rosneft and Transneft have agreed a contract on oil purchase and sales to supply a total of ...