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Russia's Lukoil Wins Iraqi Contract to Develop Major Oil Field

The Iraqi government has awarded a contract to Russian energy company Lukoil and its Norwegian partner to develop a major oil field in southern Iraq.

Iraq signed the deal Sunday with Russia's Lukoil and Statoil of Norway for expansion of the West Qurna Phase 2 oil field, one of the country's largest. The site has known reserves of around 13 billion barrels of oil.

Iraq has awarded a series of contracts to foreign energy companies in recent weeks to develop Iraqi oil deposits. The deals are aimed at dramatically boosting Iraq's oil production to 12 million barrels a day in the coming years.

Lukoil and Statoil signed an initial agreement to develop the West Qurna field last month. They will earn $1.15 per barrel extracted over a 20-year period, with an option to extend the deal by five years.

Some information for this report provided by AFP, AP and Reuters.