(Adds Abadi quotes)
BASRA, Iraq, Aug 18 (Reuters) - Iraq's Prime Minister Haider al-Abadi visited the supergiant West Qurna-2 oilfield to reassure its Russian operator Lukoil
The state-run South Oil Company (SOC) last week sent a report to the oil ministry asking it to defuse the protests by people in the areas near some of the southern fields where most of Iraq's crude is produced, including West Qurna-2.
Hundreds of locals recently blocked some of the entrances to West Qurna-2 demanding jobs in a sign of the growing challenges facing foreign firms operating in the south, even though they are far from areas of conflict with Islamic State militants.
"We explained in the report that if such undesired harassments to the foreign operators continue, oil production will definitely be affected," said a senior SOC source on condition of anonymity.
After meeting with Lukoil officials at West Qurna, Abadi toured the surrounding villages that have been a source of the protests.
Local communities and tribes in Iraq, where foreign oil companies are developing the OPEC nation's vast energy reserves, periodically protest to squeeze companies for jobs and other work benefits.
"The situation is under control and the companies must not fear any threat," Abadi said during the trip, according to a statement on his website. "Some people stand against the progress of Iraq and place obstacles in its way, but we won't allow them and will use all our capabilities to stop them and continue producing oil."
Oil exports from southern Iraq rose to a record average of 3.064 million barrels per day (bpd) in July.
A Lukoil official based in the oil hub of Basra told Reuters operations were continuing as normal at West Qurna-2 with a steady output of 450,000 bpd, but said production might be disrupted unless the situation was resolved.
"Recent pressure from villagers and nearby residents making demands could force us to consider halting operations if they keep extorting us," he said.
Protests started last year, but intensified in recent weeks as Iraqis take to the streets in a show of anger against corruption and mismanagement that has prompted Abadi to announce a reform plan.
The people of Basra complain that although the bulk of Iraq's oil is produced and shipped from their province, they do not enjoy the benefits.
"Despite Lukoil's ongoing initiatives to hire more labourers from nearby areas, things have got out of control," the senior SOC official said. "Someone who is asking for a job as a cleaner one day comes back asking for a thousand dollar-contract the next."
(Reporting by Aref Mohammed in Basra and Ahmed Rasheed in Baghdad; Editing by Isabel Coles and William Hardy) ((isabel.coles@thomsonreuters.com; +964 790 191 7024; Reuters Messaging: isabel.coles.reuters.com@reuters.net))
Keywords: IRAQ OIL/
BASRA, Iraq, Aug 18 (Reuters) - Iraq's Prime Minister Haider al-Abadi visited the supergiant West Qurna-2 oilfield to reassure its Russian operator Lukoil
The state-run South Oil Company (SOC) last week sent a report to the oil ministry asking it to defuse the protests by people in the areas near some of the southern fields where most of Iraq's crude is produced, including West Qurna-2.
Hundreds of locals recently blocked some of the entrances to West Qurna-2 demanding jobs in a sign of the growing challenges facing foreign firms operating in the south, even though they are far from areas of conflict with Islamic State militants.
"We explained in the report that if such undesired harassments to the foreign operators continue, oil production will definitely be affected," said a senior SOC source on condition of anonymity.
After meeting with Lukoil officials at West Qurna, Abadi toured the surrounding villages that have been a source of the protests.
Local communities and tribes in Iraq, where foreign oil companies are developing the OPEC nation's vast energy reserves, periodically protest to squeeze companies for jobs and other work benefits.
"The situation is under control and the companies must not fear any threat," Abadi said during the trip, according to a statement on his website. "Some people stand against the progress of Iraq and place obstacles in its way, but we won't allow them and will use all our capabilities to stop them and continue producing oil."
Oil exports from southern Iraq rose to a record average of 3.064 million barrels per day (bpd) in July.
A Lukoil official based in the oil hub of Basra told Reuters operations were continuing as normal at West Qurna-2 with a steady output of 450,000 bpd, but said production might be disrupted unless the situation was resolved.
"Recent pressure from villagers and nearby residents making demands could force us to consider halting operations if they keep extorting us," he said.
Protests started last year, but intensified in recent weeks as Iraqis take to the streets in a show of anger against corruption and mismanagement that has prompted Abadi to announce a reform plan.
The people of Basra complain that although the bulk of Iraq's oil is produced and shipped from their province, they do not enjoy the benefits.
"Despite Lukoil's ongoing initiatives to hire more labourers from nearby areas, things have got out of control," the senior SOC official said. "Someone who is asking for a job as a cleaner one day comes back asking for a thousand dollar-contract the next."
(Reporting by Aref Mohammed in Basra and Ahmed Rasheed in Baghdad; Editing by Isabel Coles and William Hardy) ((isabel.coles@thomsonreuters.com; +964 790 191 7024; Reuters Messaging: isabel.coles.reuters.com@reuters.net))
Keywords: IRAQ OIL/
