Russian energy giant Lukoil, plans to increase oil production in Iraq and is to negotiate the conditions of existing service contracts.  

Lukoil President Vagit Alekperov, announced the news to Interfax after a meeting with Iraqi Deputy Oil Minister Fayadh Al-Nima on 1st June.

‘Negotiations are still being held regarding the contract. For now we have confirmation from the ministry about its willingness to hold negotiations,’ said Alekperov.

Iraq is OPEC’s second largest oil producer, currently pumping 4.5 million barrels of oil a day. Only Russia, the US and Saudi Arabia produce more oil.

Russian oil companies operating abroad have benefited from the devaluation of the ruble in recent years, and are therefore hungry to step up production in markets abroad where they already have a presence.