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Image courtesy of LUKOIL.

The first crude carrier to transport Lukoil’s buy-back oil from the West Qurna-2 contract arrived at Iraq’s southern port of Basra, the company said Thursday.

The shipment will total 1 million barrels.

The carrier was chartered by LITASCO, Lukoil’s international marketing and trading arm.

The shipment is the first Lukoil has received as part of its cost recovery from phase one of the project.

Commercial production at West Qurna-2 started March 29 at 120,000 barrels per day.

Lukoil holds a 93.75 stake in the project.

West Quarna-2 has a target production plateau of 1.2 million barrels of oil per day, a plateau production period of 19.5 years and a contract extension period 25 years.

Its estimated recoverable reserves are approximately 13 billion barrels that will be produced from two major formations, Mishrif and Yamama.

Production at West Qurna-2 is now 280 thousand barrels per day, Lukoil said.

The size of the current contract area is over 155 sq mi (300 sq km).

“The loading of this crude carrier provides further evidence of the reliable partnership between Lukoil and the Iraqi side in developing the country’s oil industry,” Vice President of Lukoil and President of Lukoil Overseas Andrey Kuzyaev said.

West Qurna-2 is located in southern Iraq, about 40 miles (65 km) northwest of Basra.