- The Eridu field is the biggest oil find in Iraq in the last 20 years.
- March saw Iraq’s state-owned Dhi Qar Oil Company (DQOC) formally approve the development of Block 10’s reserves, including for the whole Eridu field.
- Inpex' decision to sell its 40 percent stake in the Block 10 region that contains the huge Eridu discovery leaves the way clear for Lukoil to take total control of the entire oil-rich area.
Preliminary estimates suggested that Iraq’s Eridu oil field holds between 7-10 billion barrels of reserves. Senior Russian oil industry sources spoken to exclusively by OilPrice.com last week said the true figure may well be 50 percent more than the higher figure of that band. In either event, the Eridu field - part of Iraq’s Block 10 exploration and development region – is the biggest oil find in Iraq in the last 20 years, and Russia wants to control all of it, alongside its chief geopolitical ally, China. This is in line with Moscow and Beijing’s objective of keeping the West out of energy deals in Iraq to keep Baghdad closer to the new Iran-Saudi axis and to “end [the] Western hegemony in the Middle East [that] will become the decisive chapter in the West’s final demise,” as exclusively related to OilPrice.com. The approval last week by Iraq’s Oil Ministry for Inpex – the major oil company of key U.S. ally Japan – to sell its 40 percent stake in the Block 10 region that contains the huge Eridu discovery leaves the way clear for Lukoil to take total control of the entire oil-rich area.
Lukoil had held a 60 percent stake in the entirety of Block 10, with the remainder held by the Japanese firm. However, from March it has been looking for ways to push Inpex out of the Block, and with it the last remnants of Western influence in the area. March saw Iraq’s state-owned Dhi Qar Oil Company (DQOC) formally approve the development of Block 10’s reserves, including for the whole Eridu field. Block 10 lies in the southeast of Iraq, approximately 120 km west of the key oil export route from Basra, and just south of the huge oil fields in and around Nassirya. The contract for Block 10 awarded to Lukoil and Inpex back in 2012 in Iraq’s fourth licensing round gives a relatively high remuneration per barrel rate of US$5.99, although at that point the vast Eridu field had not been discovered. In 2021, after some preliminary testing, Iraq’s Oil Ministry said it expected peak production of at minimum 250,000 barrels per day (bpd) from Eridu by, at that point, 2027. The senior Russian oil industry sources exclusively spoken to by OilPrice.com last week, believe peak production could run at least 100,000 bpd higher than the previous figure, contingent on whether the new reserves estimates are correct, although given delays in development since 2021, the date at which that will be achieved is now toward the end of 2029.
