MOSCOW-BAGHDAD, Feb 10: Iraq has terminated a major oil exploration partnership with Russia’s largest oil company Lukoil despite last- ditch diplomatic efforts to save the deal, Moscow-based news agencies reported Monday.

The topic of Lukoil’s alleged failure to meet obligations in the West Qurna-2 oilfield project “is closed and the agreement terminated”, Itar-Tass quoted acting Iraqi oil minister Samir Aziz al-Najim as saying in Baghdad.

The Russian company had invested “not a single dollar” of 200 million it was committed to in the past three years, he said.

But opportunities to work the oil field remained open for other oil companies, above all from Russia, the minister said,

The Iraqi government and Lukoil agreed in 1997 to tap an estimated 20 billion barrels of oil at the site. But the company said it had to wait because of U.N. economic sanctions against Iraq.

Observers saw last year’s initial announcement of termination of the project as retaliation for Russia not blocking the U.N. resolution on “serious consequences” if Iraq was found to be hiding weapons of mass destruction.

Russian diplomatic intervention in recent weeks failed to save the contract.—dpa