Russian energy firms 'welcome' in Iraq

Russian Energy Minister Sergei Shmatko has said that the country feels welcome and wanted in Iraq, after its highest level visit to the country since the 2003 US-led invasion.

The visit saw representatives from Russia's leading energy companies such as Rosneft, Lukoil, TNK-BP and Zarubezhneft reach agreements on the construction of two gas pipelines and the launch of three power stations.

"We've received a clear signal from the Iraqi government that Russian oil companies are welcome guests in Iraq," Shmatko said in a statement Wednesday after his visit earlier this week.

"We have accumulated considerable international experience in the implementation of projects for deposit development and the creation of corresponding transport and production infrastructure in the energy sector. We have something to offer our Iraqi partners."

Under the new agreement parties, Russia will help Iraq build the Kirkuk-Baniyas gas pipeline, a second strategic gas pipeline and arrange the operation of the Yusifiya and Dibis thermal power plants in Iraq.

Russia is seeking to revive political and economic ties with Iraq that were disrupted by the US invasion six years ago as well as positioning itself for future energy deals in the oil-rich country.

In 1997, Lukoil signed a multi-billion dollar contract to explore the West Qurna 2 oilfield but were famously expelled in 2002 before the invasion of Iraq due to disagreements with the Saddam Hussein regime. They are hopeful to reacquire the bid for the field.

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