ST. PETERSBURG, June 7 (RIA Novosti) - Russia's largest independent oil producer LUKoil is hoping for success in negotiations with Iraq on a deal to develop Iraq's largest oil field, West Qurna-2, the company's CEO said on Saturday.

"We are hoping for the successful completion of negotiations after an oil law is adopted," Vagit Alekperov said.

He said talks are ongoing with Iraq's oil ministry, as well as with the country's top leadership.

Iraq and LUKoil agreed earlier this year to set up a working group to update a contract to develop West Qurna-2.

The contract to develop the second leg of the oil field was initially signed on March 21, 1997, under the reign of Saddam Hussein. LUKoil operated the first phase of West Qurna and is looking to develop West Qurna-2, located in southern Iraq. The deal for both stages has been signed for 23 years, but was frozen in 2002.

West Qurna-2's proven recoverable reserves have been estimated at around 6 billion barrels of oil. Under the terms of the contract, output could amount to 4.8 billion barrels of oil and 56.4 billion cubic meters of associated gas. Investment in the project could reach $4 billion.

Baghdad is also discussing the West Qurna-2 oil field with Chevron and Total. However, analysts say that Iraq is likely to resume work at West Qurna-2 with LUKoil after Russia recently wrote off the bulk of the country's debt of around $12 billion.

The Russian company is among 35 firms listed for petroleum contracts with the licensing office of the Iraqi Oil Ministry, out of 120 companies that submitted bids in January-February to develop Iraq's vast oil and gas fields.