A consortium led by Russia's largest independent crude producer LUKoil is expected to sign a contract with Iraq on Sunday to develop the West Qurna-2 oil field.
The consortium of LUKoil (85%) and Statoil won the 20-year contract for the Iraqi oil project on December 12. LUKoil, Norway's Statoil and Iraq's state North Oil Company as contractor companies and Iraq's state South Oil Company initialed the contract December 29.
LUKoil CEO Vagit Alekperov said earlier the contract had an option to be extended for another five years.
He also said LUKoil will invest $4.5 billion in West Qurna-2 within the next three to five years, adding that his company had already invested some $300 million in start-up work and the search for contractors.
Alekperov said the field would yield 95 million tons (698 mln bbl) for 13 years and there will be just 380 oil wells.
LUKoil and StatoilHydro will develop the 12.9 billion-barrel West Qurna-2 field in the Basra province aiming to bring production to 1.8 million barrels per day.
LUKoil was involved in the development of the first phase of West Qurna and signed a contract with the Saddam Hussein regime to develop the second stage, but the deal was frozen in 2002.
MOSCOW, January 31 (RIA Novosti)
