Lukoil Vice President Andrei Kuzyaev said in May his company plans to invest $4 billion to develop the West Qurna oil field in southern Iraq. The field, near the southern port city of Basra, is estimated to hold as much as 14 billion barrels of recoverable reserves, making it among the largest undeveloped fields in the world.
Lukoil said in a notice issued last week to investors the southern Iraqi oil field is expected to contribute to a slow and steady increase in overall oil production.
"We have already commenced development drilling and construction of an oil treatment plant at the gigantic West Qurna-2 field in Iraq," the company said.
Lukoil signed a 20-year contract in 2010 to develop West Qurna-1 alongside Iraqi state-owned North Oil Co. The Russian said the field should yield around 150,000 barrels of oil per day in the coming years.
Exxon, Chevron and French energy company Total operate the West Qurna-1 oil field.